Intangible Assets Pineway Manufacturing Company reports both equipment and patents in its balance sheet.

a. Explain how the dollar amount for each asset is determined.

b. If both assets were purchased three years ago for $10,000 each and had estimated useful lives of ten years, what amounts would be reported in the balance sheet at the end of the current period? Explain.

c. Financial analysts sometimes ignore intangible assets in analyzing financial statements. Do you think this is appropriate? Explain.