Response to DQ you answered this week already
I’ve heard a lot about copyrights lately. First, is there a such a thing as an intangible asset called “copyright,” and, second, if so, how should we account for it?
Let’s say you are just starting a business and plan to allow purchases of inventory and services to be made on account. Knowing what you’ve learned in this material and have discussed in your response, how would you handle the inevitable bad debts that occur in your new business?
Yes, there is an intangible asset called copyrights. A copyright is a grant by the federal government that gives an author, artist or creator the exclusive rights of selling, publishing or otherwise the control of either literary or artistic materials for the author’s life plus fifty years. Copyrights are accounted for like natural resources and depreciable assets. The cost of copyrights is allocated systematically to expense……….