ASSIGNMENT NO. 1 The balance sheet of the company X as at 31.12.2015 is as follows: ASSETS EQUITY & LIABILITIES Intangible assets (concession) 30 000 Shareholders' equity 100 000 Other assets (including cash) 150 000 Liabilities 80 000 Total assets 180 000 Total equity & liabilities 180 000 Required: Open opening balances, record all transactions in appropriate T-accounts and prepare income statement for 2016. In 2016 the company: I a) The company X purchased company Lix. Assets of company Lix were 100 000, Liabilities were 70 000 and the cost of purchase of Lix was 40 000 in cash. b) The company X incurred research and development costs. The research amounted to 20 000 and completed development costs (on 31.12.2015) to 45 000. The company will amortize the research cost over 5 years using a straight-line depreciation method. c) On December 31, 2015 the company purchased a concession for 30 000. The company will amortize the concession over 7 years using a straight-line amortization method assuming a residual value of 2 000