Ask Experts Questions for FREE Help !
Ask
    krise177's Avatar
    krise177 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 25, 2012, 03:18 PM
    Acquisition of Intangible Asset-PV & interest and amortization - HELP
    Highlight Company purchases the right to use a certain piece of music from the musician. It hopes to make this its “signature song” so it will be a long-term relationship, the contract stating five years. The agreed upon price is $750,000, with no stated interest rate. Highlight could borrow money at 5 percent interest currently. The arrangement states that Highlight will make a down payment on 1/1/X2 of $150,000, and pay $150,000 at the beginning of the following four years, making this an annuity due.

    a. Record the journal entry to record the copyright on 1/1/X2.


    b. Record the journal entries to record interest expense and amortization expense on 12/31/X2, 12/31/X3, 12/31/X4, and 12/31/X5

Check out some similar questions!

Fixed asset or Intangible asset [ 4 Answers ]

Is the U.S. Treasury Note. A Fixed or Intangible Assets.

Intangible asset [ 1 Answers ]

How do I prepare journal entries to clear intangible asset account

Amortization of intangible assets [ 3 Answers ]

Which method of amortization for intangible assets is required under U.S GAAP ?

View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.