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Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan.

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Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan. 2 Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Apr. 1 Acquired another company and recorded goodwill of $320,700 as part of the purchase. July 1 Acquired a franchise for $234,000. The franchise agreement is renewable without charge and not expected to expire. Sept. 1 Incurred research costs of $142,000. 30 Incurred development costs of $48,400. A marketable product has been identified and resources have been secured so that production will start next year. Dec. 31 Recorded annual amortization. 31 Tested the intangible assets for impairment. Recoverable amounts exceeded carrying amounts for all intangible assets. Also tested goodwill and determined that it had a recoverable amount of $287,320. (b) Your answer is partially correct. Try again. Show the presentation of the intangible assets and goodwill on the statement of financial position at December 31. SANDHILL LTD. Statement of Financial Position (Partial) December 31, 2018 Assets Intangible Assets Patents 40,280 A Accumulated Amortization - Patents 8,056 32,224 Less Incuiuidun TIC $U T Franchises Franchises 234,000 Research Expenses 190,400 T Total Intangible Assets 456,624 TGoodwill Goodwill 287,320

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