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3-5 E12-6 (Recording and Amortization of Intangibles) Powerglide Company, organized in 2014, has set up a single account for all intangible assets. The following summary

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3-5 E12-6 (Recording and Amortization of Intangibles) Powerglide Company, organized in 2014, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2015. 1/2/15 Purchased patent (8-year life) f 380,000 4/1/15 Goodwill (indefinite life) 360,000 7/1/15 Purchased franchise with 10-year life; expiration date 7/1/25 450,000 8/1/15 Payment of copyright (5-year life) 156,000 9/1/15 Development costs to increase the value of the patent (E55,000 incurred after economic viability achieved) 215,000 f1,561,000 Instructions 1- Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. 2- Make the entries as of December 31, 2015, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)3-1 Identify the costs to include in the initial valuation of intangible assets? 3-2 Explain the procedure for amortiting intangible assets? 3-3 Explain the accounting issues for recording goodwill? 3-4 Hama inc. has the following amounts reported in its general ledger at December 31, 2015. Organization costs E 24,000 Trademarks 20,000 Bonds payable 35,000 Deposits with advertising agency for ads to promote goodwill of company 10,000 Excess of cost over fair value of net identifiable assets of acquired subsidiary 35,000 Cost of equipment acquired for research and development projects; the equipment has an alternative future use 00,000 Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years (all research phase} 390,000 Instructions [a] 0n the basis of the information above, compute the total amount to be reported by Fiama for intangible assets on its statement of nancial position at December 31, 2015. As noted, the equipment has aiternative future use. {b} If an item is not to be included in intangible assets, explain its proper treatment for reporting DUFF USES

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