Below are several events and/or transactions.
a. Paid the government S3,000,000 for the right to broadcast on a certain frequency for five years.
b. Paid legal fees of $6,000,000 to successfully defend the company’s exclusive right to a drug patent it had developed and registered. The drug is highly profitable, earning over $50,000,000 annually.
c. Paid legal fees for $7,000,000 to defend the exclusive right to a drug patent the company had developed and registered. The court ruled the company did have the right but it was NOT exclusive. The drug is highly profitable, earning over $50,000,000 annually.
d. Paid $5,000,000 to an outside training firm to educate staff on the implementation and operation of a new decision support system.
e. Purchased a fleet of 100 taxis along with their taxi licences to operate in Winnipeg for $2,500,000. The fair value of the cars is reasonably and reliably estimated to be $1,500,000.
Required:
For each case above, decide whether an intangible asset arose from the described case and how it might be valued. Justify your recommendation.