Question: 1. What general procedures are applied in accounting for the acquisition and potential cost allocation of intangible assets?
2. Busch Gallery purchases the copyright on an oil painting for $236,700 on January 1, 2011. The copyright legally protects its owner for 12 more years. The company plans to market and sell prints of the original for 15 years. Prepare entries to record the purchase of the copyright on January 1, 2011, and its annual amortization on December 31, 2011.