C & T ompany purchased a company that produced bottled water with fruit juice ad

Question

C & T ompany purchased a company that produced bottled water with fruit juice additives The brand name for these products, Fruit Options, was well known and had a well established customer base At the time of purchase, January 2 of the current year C&T; valued this brand name at $255,000. The life of this intangible asset cannot be determined. However, it was assessed at the end of & T's year end, June 30 ocessing of the fruit julces had a remaining lfe of 5 years and an amount of $5,700 was recorded on the books for it Prepare the journal entries for the amortization of these items at Oc Da oz

Explanation / Answer

Journal Entry

Jun 30 Amortization expense Dr 5700
To Accumulated Amortization- Patent 5700
(Being amortization entry passed for patent for the year)

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