Tamarisk Industries acquired two copyrights during 2017. One copyright related t

Question

Tamarisk Industries acquired two copyrights during 2017. One copyright related to a textbook that was developed internally at a cost of $14,000. This textbook is estimated to have a useful life of 5 years from September 1, 2017, the date it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2017, for $25,000. This textbook has an indefinite useful life.

How should these two copyrights be reported on Tamarisk’s balance sheet as of December 31, 2017?

Should be reported on Balance SheetShould not be reported on Balance Sheet

Should not be reported on Balance SheetShould be reported on Balance Sheet

Explanation / Answer

Copyright No. 1 $0 Should not be reported on Balance Sheet

Copyright No. 2 $25000 Should be reported on Balance Sheet

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.