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3 years ago

Larkspur Industries acquired two copyrights during 2020.

Business

1 answer:

denpristay [2]3 years ago

3 0

Answer:

1st copyright will not be reported on balance sheet.

2nd copyright will be reported on balance sheet.

Dr Copyright (Intangible Asset) $34,000

Cr Cash $34,000

Explanation:

<u>1st Copyright</u>

If an intangible asset is internally generated, none of its costs are capitalized.

<u>2nd Copyright</u>

Acquired copyright is reported on balance sheet as an intangible asset. Company may include only outright purchase costs in the acquisition cost of an intangible asset; the acquisition cost does not include cost of internal development.

Only recognized intangible assets with finite useful lives are amortized. Recognized intangible assets having indefinite useful lives are not amortized.

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