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Part III. The intangible assets and goodwill reported by Ip Corp. at December 31, 2023, follow: The company acquired the patents in January 2022 and
Part III. The intangible assets and goodwill reported by Ip Corp. at December 31, 2023, follow: The company acquired the patents in January 2022 and they have a useful life of 10 years. A copyright (\#1) that the company acquired in January 2018 also has a useful life of 10 years. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2024: Jan. 2 Paid $22,500 in legal costs to successfully defend the patents against infringement by another company. Determined that the revised annual amortization for the patents will be $9,812. July 1 Developed a new product, incurring $220,000 in research costs and $60,000 in development costs with probable future benefits. The useful life of the new product is equal to 20 years. Sept. 1 Paid $11,000 to an Olympic curler to appear in commercials advertising the company's products. The commercials will air in September. Oct. 1 Acquired a second copyright for $16,000. Copyright #2 has a useful life of five years. Dec. 31 Determined the fair value of the goodwill to be $175,000. There was no indication that the patents or copyrights were impaired. Instructions
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