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?
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.
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.
