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I received only a partial mark on this one. Please help me correct it 37 E9-12 Computing and Reporting the Acquisition and Amortization of Three
I received only a partial mark on this one. Please help me correct it
37 E9-12 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO6] 1.52 points eBook 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 $5,730. When purchased the patent had an estimated life of 15 years. b. A trademark was registered with the federal government for $16,000. 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 $62,400. The rights are expected to have a four-year useful life to the company. References Required: 1. Compute the acquisition cost of each intangible asset Acquisition cost: Patent Trademark Licensing rights $ $ $ 5.730 16.000 62.400 2. Compute the amortization of each intangible for the year ended December 31, 2014 $ 3821 Amortization expense Patent Trademark Licensing rights $ 0 $ 15,600 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2014. Partial Income Statement for 2014 Amortization expense is 15,982 Partial Balance Sheet at December 31, 2014: Intangibles: Patent, net $ Trademark Licensing rights.net Total Intangibles 5,348 10.000 46 800 62.148Step by Step Solution
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