Milano Gallery purchases the copyright on an oil painting for $510,000 on January 1, 2017. The copyright legally protects its owner for 12 more years. The company plans to market and sell prints of the original for 19 years. Requried:

Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.

See journal entries below.

Explanation:

The copy right is known as an intangible asset that is purchased to a business hence debited to factor in its purchase value while the bank is credited for the payment for the purchase.

Although the copyright is amortized for 12 years, the copyright protection expires after 12 years - which is the legal year irrespective of its plan to market and sell the painting for 19 years.

• Entries to record to record the purchase of copyrights on January 1, 2017.

Date

January 1,2017

Copyright Dr $510,000

Bank Cr $510,000

(Being purchase of 12 years painting copyrights)

• Annual amortization on December 31, 2017

December 31, 2017

Amortization Dr $42,500

Copyright Cr $42,500

(Being annual amortization cost on 12 years painting copyright)

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

explanation: i am going to tell you a lie dont know i just wanted to answer lol