What are the two main characteristics of intangible assets?
It is not physical, meaning it exists as a legal authority and is distinguishable from other assets.
An identified non-monetary item with no physical substance is known as an intangible asset. It is identifiable when an asset is separable or comes from contractual or other legal rights.
An intangible asset has two key characteristics: it is not physical, meaning it exists as a legal authority and is distinguishable from other assets.
Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2015, the company expends $325,000 on a research project, but by the end of 2015, it is impossible to determine whether any benefit will be derived from it.
Question: Treasure Land Corporation incurred the following costs in 2017.
Cost of laboratory research aimed at the discovery of new knowledge
Cost of testing in search for product alternatives
Cost of engineering activity required to advance the design of a product to the manufacturing stage
Prototype testing subsequent to meeting economic viability
Prepare the necessary 2017 journal entry(ies) for Treasure Land.
Question: Sinise Industries acquired two copyrights during 2017. One copyright related to a textbook that was developed internally at a cost of $9,900. This textbook is estimated to have a useful life of 3 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 $24,000. This textbook has an indefinite useful life. How should these two copyrights be reported on Sinise’s balance sheet as of December 31, 2017?
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