FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Crane Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Crane purchased two copyrights during 2023. The first copyright was purchased on February 1 for $21,000 and was expected to have a useful life until the end of December, 2025. The second copyright was purchased on July 1 for $145,800 and was expected to have an indefinite useful life. Crane's fiscal year-end was December 31. On July 1. 2024. Crane paid $5,400 in legal fees to successfully defend the first copyright in court. On September 1, 2024, Crane determined that the second copyright would no longer have an indefinite useful life, and in fact would have a useful life of another 9 years beginning September 1, 2024. On April 1, 2025, Crane sold the second copyright for $155,350.00 Prepare the journal entries on the books of Crane to record the above transactions. (Hint: don't forget the year-end amortization entries).
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