Exercise 12-7 (Part Level Submission) In early January 2016, Flint Corporation applied for a trade name, incurring legal costs of $16,760. In January 2017, Flint incurred $8,560 of legal fees in a successful defense of its trade name.

(a)

Compute 2016 amortization, 12/31/16 book value, 2017 amortization, and 12/31/17 book value if the company amortizes the trade name over 10 years. (Round all answers to 0 decimal places, e.g. 8,564)

2016 amortization		$
12/31/16 book value		$
2017 amortization		$
12/31/17 book value		$

Exercise 12-8 (Part Level Submission)

Pharoah Company has provided information on intangible assets as follows. A patent was purchased from Ford Company for $2,624,000 on January 1, 2016. Pharoah estimated the remaining useful life of the patent to be 10 years. The patent was carried in Fords accounting records at a net book value of $1,838,000 when Ford sold it to Pharoah. During 2017, a franchise was purchased from Polo Company for $514,000. In addition, 4% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2017 was $2,496,000. Pharoah estimates the useful life of the franchise to be 10 years and takes a full years amortization in the year of purchase. Pharoah incurred research and development costs in 2017 as follows.

Materials and equipment		$142,900
Personnel		185,200
Indirect costs		109,100
		$437,200

Pharoah estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses. On January 1, 2017, because of recent events in the field, Pharoah estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017.

(a)

Prepare the intangibles section of Pharoahs balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.)

PHAROAH COMPANY Intangibles Section of Balance Sheet December 31, 2017For the Month Ended December 31, 2017For the Year Ended December 31, 2017
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
					$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					$