In 1979 Epstein Company acquired the assets of Falk Company. The assets of Falk Company included various intangibles. Discuss the accounting for the acquisition in 1979 and in later years for each of the items described below.

a Registration of the trademark Thyrom for thyristors expires in 3 years. Epstein Company thought that the trademark had a fair market value of \(\$ 60,000\). 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 5 years. The Epstein Company thought that the design patent had a fair market value of \(\$ 20,000\) and expects to continue making the containers indefinitely.

c An unpatented trade secret on a special material used in manufacturing thyristors was viewed as having a fair market value of \(\$ 250,000\).

d Refer to the trade secret in part

c. Suppose that in 1980 a competitor discovers the trade secret, but does not disclose the secret to other competitors. How should the plans for accounting be changed?

e During 1979, the Epstein Company produced a sales promotion film, Using Thyristors for Fun and Profit, at a cost of \(\$ 25,000\). The film is licensed to purchasers of thyristors for use in training their employees and customers. The film is copyrighted.