) Prepare a schedule showing the intangibles section of Carters balance sheet at December 31, 2014. Show supporting computations in good form. (5 Marks)

(b) Prepare a schedule showing the income statement effect (related to expenses) for the year ended December 31, 2014, as a result of the facts above. Show supporting computations in good form. (5 Marks)

6 X 301 Final Fall2021 - Word (Product Activation Failed) View Tell me what you want to do... File Home Insert Design Layout References Mailings Review Sign in Share Q.4 Square Company has provided information on intangible assets as follows. A patent was purchased from Beximco Company for $2,000,000 on January 1, 2013. Square estimated the remaining useful life of the patent to be 10 years. The patent was carried in Beximce's accounting records at a net book value of $2,000,000 when Beximco sold it to Square. During 2014, a franchise was purchased from Ronald Reagan Company for $480,000. In addition, 5% of revenue from the franchise must be paid to Reagan. Revenue from the franchise for 2014 was $2,500,000. Square estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Square incurred research and development costs in 2014 as follows. Materials and equipment $142.000 Personnel 189,000 Indirect costs 102,000 $433,000 Square estimates that these costs will be recouped by December 31, 2017. The materials and equipment purchased have no alternative uses. On January 1, 2014, because of recent events in the field Square estimates that the remaining life of the patent purchased on January 1, 2013, is only 5 years from January 1, 2014. Instructions: (a) Prepare a schedule showing the intangibles section of Carter's balance sheet at December 31, 2014. Show supporting computations in good form. (5 Marks) (b) Prepare a schedule showing the income statement effect (related to expenses) for the year ended December 31, 2014, as a result of the facts above. Show supporting computations in good form. (5 Marks) Answer the following questions (answer one from each part) Q5 a) What the two methods of amortizing discount and premium on bonds payable? Explain each. (5 Marks) Page 3 of 3 188 of 863 words DS + 100% H Type here to search a O 81F Haze 2:36 PM 1/8/2022