Reporting Intangible Costs Hanks Co. recorded the following amounts for the current year. o Research and development costs, $50,000. o Patent acquired on January 1 with 10-year useful life, $35,000. o Goodwill from purchase of a company, $100,000. o Acquired customer list with an indefinite useful life, $20,000. o Legal fees paid on December 31 to register a patent (internally developed, 15-year useful life), $5,000. Hint: If amount is not included on the financial statements, enter a zero or leave answer blank. a. Determine the amounts to be included on the balance sheet on December 31. Assume no asset is impaired. Balance Sheet, Dec. 31 Prepaid expense $ Patents, net Goodwill Customer list b. Determine amounts to be included on the income statement for the year. Assume no impairment losses were recorded. Income Statement, for the Year Ended Dec. 31 Research and development expense $ Amortization expense Other operating expense

Reporting Intangible Costs Hanks Co. recorded the following amounts for the current year. Research and development costs, $50,000. Patent acquired on January 1 with 10 -year useful life, $35,000. Goodwill from purchase of a company, $100,000. Acquired customer list with an indefinite useful life, $20,000. Legal fees paid on December 31 to register a patent (internally developed, 15-year useful life), $5,000. Hint: If amount is not included on the financial statements, enter a zero or leave answer blank. a. Determine the amounts to be included on the balance sheet on December 31 . Assume no asset is impaired. b. Determine amounts to be included on the income statement for the year. Assume no impairment losses were recorded