E9-12 Computing and Reporting the Acquisition and Amortization of Three [LO6] Kreiser Company had three intangible assets at the end of 2014 (end of the accounting year): a. A patent was purchased from J. Miller on January 1, 2014, for a cash cost of $5,595. When purchased, the patent had an estimated life of 15 years. b. A trademark was registered with the federal government for $23,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life. C. Computer licensing rights were purchased on January 1, 2014, for $58,800. The rights are expected to have a four-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 38 PA9-2 Computing Acquisition Cost and Recording Depreciation under Three AH LO3] 176 points 2 At the beginning of the year, CCZ Corporation bought three used machines from Pequita Compression Incorporated. The machines immediately were overhauled, installed, and started operating. Because the machines were different from each other, each was recorded separately in the accounts. 01:29:12 eBook References Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Machine A Machine B Machine C $10,100 $28,550 $22,500 1,650 2,150 850 650 1,450 1.650 550 450 750 By the end of the first year, each machine had been operating 7,500 hours. Required: 1-o. Compute the cost of each machine. Machine