Accounting for intangibles. In Year 1, Epstein Company acquired the assets of Falk Company, which included various intangibles. Discuss the accounting for the acquisition in Year 1, and in later years, for each of the following items.

a. Registration of the trademark Thyrom ${ }^{\circledR}$ for thyristors expires in three years. Epstein Company believes that the trademark has a fair market value of $\$ 100,000$. It expects to continue making and selling Thyrom thyristors indefinitely.

b. The design patent covering the ornamentation of the containers for displaying Thyrom thyristors expires in five years. Epstein Company thinks that the design patent has a fair market value of $\$ 30,000$ and expects to continue making the containers indefinitely.

c. Epstein Company views an unpatented trade secret on a special material used in manufacturing thyristors as having a fair market value of $\$ 200,000$.

d. Refer to the trade secret in part

c. Suppose that in Year 2 a competitor discovers the trade secret but does not disclose the secret to other competitors. How should Epstein Company change its accounting policies?

e. During Year 1, Epstein Company produced a sales promotion film, Using Thyristors for Fun and Profit, at a cost of $\$ 45,000$. It licensed the film to purchasers of thyristors for use in training their employees and customers. Epstein has copyrighted the film.