Q5BE
Question
BE5-5 (L03) Crane Corporation has the following accounts included in its December 31, 2017, trial balance: Equity Investments (trading) \(21,000, Goodwill \)150,000, Prepaid Insurance \(12,000, Patents \)220,000, and Franchises $130,000. Prepare the intangible assets section of the balance sheet.
Step-by-Step Solution
Verified Answer
Total intangible assets of the business entity total $500,000.
1Step 1: Definition of Intangible Assets
The business’s resources that cannot be seen and touched are intangible assets. Even they do not have any physical existence; they provide an inflow of benefits to the business entity.
2Step 2: Intangible Asset Section
Particular | Amount $ |
Goodwill | $150,000 |
Patent | 220,000 |
Franchises | 130,000 |
Total intangible assets | $500,000 |
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