ACC 557 Problem 9-7A

ACC 557 Problem 9-7A


Problem 9-7A (Part Level Submission)


The intangible assets section of Glover Company at December 31, 2013, is presented below.


Patents ($77,200 cost less $7,720 amortization)                     $69,480

Franchises ($39,900 cost less $15,960 amortization)              23,940

Total                        $93,420

The patent was acquired in January 2013 and has a useful life of 10 years. The franchise was acquired in January 2010 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2014.


Jan. 2               Paid $53,100 legal costs to successfully defend the patent against infringement by another company.

Jan.–June                     Developed a new product, incurring $138,260 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life.

Sept. 1             Paid $59,240 to an extremely large defensive lineman to appear in commercials advertising the company’s products. The commercials will air in September and October.

Oct. 1              Acquired a franchise for $126,000. The franchise has a useful life of 50 years.



Place an Order

We do custom work 100% original and plagiarism free .If you need help in any assignment just send us requirements with time limit ,we will quote a price and after your confirmation ,we start working on your assignment. An original work ready for submission provided to you
  • Drop files here or
  • This field is for validation purposes and should be left unchanged.