During 2014, Blackmud Research Had the Following Transactions for Cash

question 148

Essay

During 2014, Blackmud Research had the following transactions for cash. This is Blackmud's first year of operations.
Mar 1 Registered a new patent, with a legal life of 20 years, at a cost of $30,000.
Jun 30 Incurred research costs of $68,000.
Aug 1 Incurred development costs of $50,000 related to a product that meets the standards required for capitalization of costs. The costs are expected to provide commercial benefits for 5 years.
Aug 31 Purchased a trademark with an indefinite life for $102,000.
Nov 1 Purchased software copyright for $300,000. The copyright has a remaining legal life of 30 years, and the related software is expected to produce revenue for 6 years.
Instructions
a. Record the transactions.
b. Prepare the section of the December 31, 2014 balance sheet of Blackmud Research that reports intangible assets. Show calculations where applicable.

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Definitions:

Constructs

Theoretical concepts that are used to understand or explain behaviors, attributes, or phenomena within various fields of study.

Propositions

Statements or assertions that express judgments or opinions which can be validated by evidence or truth.

Kerlinger and Lee

Authors known for their contributions to social sciences research methodology, particularly in the field of behavioral studies.

Interrelated Constructs

Concepts or frameworks that are connected and influence each other, forming a complex relationship within a particular study or theory.