Amortization of Intangibles At January 1, 2001, Film Corporation reported the following balance sheet amounts:

Buildings and equipment have been depreciated for four years on a straight-line basis and have no estimated salvage value. Patents have 10 years of remaining life and goodwill has been amortized for 2 years of its expected 10-year life.
During 2001, Film Corporation spent $80,000 for research and development activities on a new production process that Film Corporation thinks will result in substantial cost savings over the next 10 years.
What dollar amount of expense should be reported in the 2001 income statement for each of the following?

a. Depreciation.

b. Amortization of patents.

c. Amortization of goodwill.

d. Research and development costs.

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Cash and receivables Inventory Buildings and equipment Less: Accumulated depreciation $170,000 100,000 $300,000 (100,000) 200,000 Patents 70,000 Goodwill 40,000 Total assets $580,000 Accounts payable $190,000 Bonds payable 200,000 Common stock. $10 par value 50,000 Retained earnings 140,000 Total liabilities and owners" equity $580,000