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a. Patent. The company purchased a patent for a new tool at a cash cost of $74,100 on January 1,2023 . The patent has an

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a. Patent. The company purchased a patent for a new tool at a cash cost of $74,100 on January 1,2023 . The patent has an estimated useful life of 13 years. b. Copyright. On January 1, 2023, the company purchased a copyright for $29,500cash. It is estimated that the copyrighted item will have no value by the end of 10 years. c. Franchise. The company obtained a franchise from H&H Tool Company to make and distribute a special item for the automotive industry. It obtained the franchise on January 1, 2023, at a cash cost of $15,800 for a 10 -year period. d. License. On January 1, 2022, the company secured a license from the city to operate a special service for a period of five years. Total cash expended to obtain the license was $15,400. e. Goodwill. The company purchased another business in January 2020 for a cash lump sum of $540,000. Included in the purchase price was "Goodwill, $54,000." Company executives stated that "the goodwill is an important long-lived asset to us." It has an indefinite life. Required: 1. Compute the amount of amortization that should be recorded for each intangible asset at the end of the annual accounting period, December 31,2023 2. Determine the book value of each intangible asset on December 31,2024. 3. Assume that on January 2, 2025, the copyrighted item was llkely impaired in its ability to continue to produce strong revenues due to a legal dispute. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $21,200. The fair value of the copyright was dotermined to be $20,200. Compute the amount, if any, of the impairment loss to be recorded Compute the amount of amortization that period, December 31, 2023. Determine the book value of each intangible asset on December 31, 2024

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