Red Bear Ltd. purchased several intangible assets, as follows:

AssetPurchase Cost

License.......$ 80,000

Customer list...... 60,000

Patent....... 160,000

Copyright....... 250,000

The following information is also available:

• In addition to the costs listed above, there were legal fees of $12,000 associated with the license acquisitions. The licenses are valid in perpetuity, and sales of the products produced under the licenses have been strong and are expected to continue at the same level for many decades.

• The customer lists are expected to be useful for the next six years.

• The patent has a legal life of 20 years, but technological changes are expected to render it worthless after about eight years.

• The copyright is good for another 40 years, but nearly all the related sales are expected to occur during the next 10 years.

Required:

a. Calculate the annual amortization expense, if any that should be recorded for each of these intangible assets assuming the straight-line method is appropriate.

b. Show how the intangible assets section of the statement of financial position would be presented four years after acquisition of these assets, assuming that there has been no evidence that their values have been impaired. Assume that a full year of amortization was taken in the year of acquisition.