Cheshire Company had three intangible assets at the end of 2011 (end of the accounting year): (a)

Question:

Cheshire Company had three at the end of 2011 (end of the accounting year):
(a) A copyright purchased on January 1, 2011, for a cash cost of $12,300. The copyright is expected to have a 10-year useful life to Cheshire.
(b) of $65,000 from the purchase of the Hartford Company on July 1, 2010.
(c) A patent purchased on January 1, 2010, for $39,200. The inventor had registered the patent with the U.S. Patent Office on January 1, 2006.
Required:
1. Compute the acquisition cost of each intangible asset.
2. Compute the amortization of each intangible at December 31, 2011. The company does not use contra-accounts.
3. Show how these assets and any related expenses should be reported on the and income statement for 2011. (Assume there has been no impairment of goodwill.)

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