The Family Company was expanding as a result they engaged in the following activities beginning in 2016.
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a. |
Paid $30,000 to the Major League Ballpark to have the Family name displayed on the billboard for three years. |
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b. |
Purchased a franchise for $20,000 to operate trolley services around the city for tourists. The trolley service is expected to be decommissioned in 4 years due to the maintenance costs, there is hope that it will remain in service. |
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c. |
Purchased a patent for $45,000 the patent was originally filed in 2011. |
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d. |
The owner of the patent was a well-known inventor and author who sold Family the rights to his novel in exchange for 5,000 shares of stock. The stock has a $5 par value and is currently selling for $25 per share. The novel is expected to sell 1,000,000 copies in the next 2 years. |
Required:
Prepare the journal entries to record the amortization of the intangible assets for 2016. Amortize over their legal life unless otherwise noted.
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