Problem 7-5

The intangible assets section of Marigold Corporation's balance sheet at December 31, 2017, is presented here.

Patents ($71,900cost less $6,900amortization) $ 65,000

Copyrights ($62,000cost less $47,300amortization)$ 14,700

Total$ 79,700

The patent was acquired in January 2017 and has a useful life of 10 years. The copyright was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018.

Jan.2Paid $54,000legal costs to successfully defend the patent against infringement by another company.

Jan.-June Developed a new product, incurring $235,000in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $10,000.

Sept.1 Paid $62,500to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October.

Oct.1 Acquired a copyright for $264,000. The copyright has a useful life and legal life of 50 years.

tabular summary that includes the intangible asset balances as of December 31, 2017.(If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)