The Intangible assets section of Bramble Company at December 31, 2022, is presented here.
Patents ($75,000 cost less $7,500 amortization)
$67,500
Franchises ($53,400 cost less $21,360 amortization)
32,040
Total
$99,540
The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a
useful life of 10 years. The following cash transactions may have affected intangible assets during 2023.
Jan 2 Paid $33,300 legal costs to successfully defend the patent against infringement by another company.
Sept
3 Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The
commercials aired in September and October.
Oct. 1 Acquired a franchise for $126,600. The franchise has a useful life of 50 years.
Dec Developed a new product, incurring $139,000 in research and development costs during December. A patent was
granted for the product on January 1, 2024.