Problem
Sunland Company, organized in 2016, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2017.
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1/2/17
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Purchased patent (7-year life)
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$319,200
|
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4/1/17
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Purchase goodwill (indefinite life)
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349,100
|
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7/1/17
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Purchased franchise with 10-year life; expiration date 7/1/27
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444,000
|
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8/1/17
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Payment of copyright (5-year life)
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174,000
|
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9/1/17
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Research and development costs
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230,000
|
|
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$1,516,300
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Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.
Make the entry as of December 31, 2017, recording any necessary amortization.
Reflect all balances accurately as of December 31, 2017.