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(c) Information concerning TC Berhad's intangible assets is as follows: TC Berhad incurred RM352,000 of experimental and development costs in its laboratory to develop a
(c) Information concerning TC Berhad's intangible assets is as follows: TC Berhad incurred RM352,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2017. Legal fees and other costs associated with registration of the patent totaled RM65,600. TC Berhad estimates that the useful life of the patent will be eight years. A trademark was purchased from Johnson & Johnson Company for RM160,000 on July 1, 2014. Expenditures for successful litigation in defense of the trademark totaling RM40,000 were paid on July 1, 2017. TC Berhad estimates that the useful life of trademark will be 20 years from the date of acquisition. Required (i) Determine the amount of Trademark account balances reported after taking into account the above information. Show all workings on computation. (4 marks) (ii) Show the amount of patent and trademarks reported in the intangible assets section of TC Berhad's Statement of Financial Position at December 31, 2017. (3 marks) (Total 25 marks)
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