Amortisation and asset impairment Pharma Ltd has four intangible assets on its financial statements and the following information is provided about these assets:

a Patent: On 1 July 2022, Pharma Ltd purchased a patent for a headache drug called Cerbrex for $60 000 cash. The estimated useful life of the patent is 15 years.

b Copyright: On 1 July 2022 Pharma Ltd purchased copyright on a drug called Rexis for $45 500 cash. The estimated useful life is 10 years.

Record the amortisation, if any, as at 30 June 2025.

c Licence: On 1 July 2022 Pharma Ltd obtained a wholesale licence from the NSW Government for $65 000 cash. This licence allows the company to sell its pharmaceutical drugs in NSW for a period of 25 years.

d Goodwill: On 1 July 2022 Pharma Ltd acquired another company, Texa Ltd, for cash consideration of

$1 000 000. The acquisition price includes goodwill of $235 000, which is expected to have an indefinite life.

Required:

1 What amount, if any, of amortisation should be recorded for each of the above on 30 June 2023?

2 For each of the intangible assets, what amount will be recorded on the balance sheet as at 30 June 2024?

3 On 1 August 2025 there is a recent court ruling that Pharma Ltd has lost its exclusive right to manufacture Cerbrex using its patent and the patent will expire on 30 April 2026. While Pharma will most likely challenge the court ruling, it looks like the patent that Pharma holds on Celebrex may expire on 30 April 2026. What amount of impairment, if any, should be recorded?
4 If Pharma’s Cerbrex patent does expire on 30 April 2026, how will this impact Pharma’s income statement for the period ended 30 June 2026?
5 If Pharma’s Cerbrex patent does expire on 30 April 2026, how will this impact Pharma’s balance sheet for the financial year ended 2026?