AP8-16A (Intangibles and amortization) Red Bear Ltd. purchased several intangible assets, as follows: Asset Purchase Cost Licence $ 80,000 Customer list 60,000 Patent $160,000 Copyright 250,000 The following information is also available: In addition to the costs listed above, there were legal fees of $12,000 associated with the licence acquisitions. The licences are valid in perpetuity, and sales of the products produced under the licences have been strong and are expected to continue at the same level for many decades. The customer lists are expected to be useful for the next six years. The patent has a legal life of 20 years, but technological changes are expected to render it worthless after about 8 years. The copyright is good for another 40 years, but nearly all the related sales are expected to occur during the next 10 years. Required a. Calculate the annual amortization expense, if any, that should be recorded for each of these intangible assets, assuming the straight-line method is appropriate. b. Show how the intangible assets section of the statement of financial position would be presented four years after acquisition of these assets, assuming that there has been no evidence that their values have been impaired. Assume that a full year of amortization was taken in the year of acquisition