Clanton Company Engaged in the Following Transactions During 2011

question 65

Essay

Clanton Company engaged in the following transactions during 2011.Record each in the general journal below:
1)On January 3,2011,Clanton purchased a copyright from Dalton Company with a cost of $250,000 with a remaining useful life of 25 years.
2)On January 10,2011,Clanton purchased a trademark from Felton Company with a cost of $700,000.
3)On July 1,2011,Clanton purchased a patent from Garrison Company at a cost of $80,000.The remaining legal life of the patent is 15 years and the expected useful life is 11 years.
4)On July 2,2011,Clanton paid $30,000 in legal fees to defend the patent protection purchased on July 1,2011.
5)Recorded the appropriate amortization for the intangible assets for 2011.
6)Clanton Company includes an asset in its ledger recorded when Clanton purchased a computer service business at a price in excess of the fair value of the assets of the company in the amount of $400,000.At December 31,2011,$100,000 of this asset has become impaired.

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Definitions:

Facilitation

The act of making a process easier or less complicated, often through coordination, guidance, or support services.

Arbitrator

A neutral third party selected to resolve a dispute outside of court, whose decision is usually binding on all involved parties.

Compromise Decision

A decision made through negotiation where conflicting parties agree on a solution that partially satisfies both sides.

Legal Disputes

Conflicts that arise over differing interpretations of laws, contracts, or legal rights that require judicial intervention to resolve.