Scientific Genius Company had the following balances in its intangible assets accounts at the beginning of the

Question:

Scientific Genius Company had the following balances in its intangible assets accounts at the beginning of the year. The trademarks have a remaining useful life of 15 years, and the copyright has a remaining useful life of nine years.

Trademarks ........$45,000

Copyrights ....... 36,000

Goodwill ......... 50,000

Transactions during the year are as follows:

a. At the beginning of the year, Scientific Genius filed for a new trademark. The costs totaled $30,000. Its useful life is estimated at 15 years.

b. Scientific Genius incurred R&D costs of $75,000 related to new product development. No new products have been identified.

c. Scientific Genius evaluated the goodwill for impairment and reduced its book value by $5,000.

d. Scientific Genius successfully defended one of its copyrights in court. Fees totaled $18,000.

Requirements

1. Show each of the transactions in the accounting equation, including any adjustments that would need to be made for the year-end financial statements.

2. Prepare the intangible assets section of the balance sheet at year end.

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