Question

Intangible assets of Francis Group include copyrights, trademarks, and goodwill. Currently, Francis' copyrights have accumulated amortization of $6,500. How should Francis reflect this on its classified balance sheet?

Answer 1

It should be deducted from the copyright (Intangible asset) value on the balance sheet. net value of copyright should be reported on the balance sheet.

Step-by-step explanation:

Accumulated amortization is the accumulated expense of amortization each based on its useful life. It is a contra asset account and it must be deducting while reporting the value of corresponding intangible asset. It normally has credit balance.