Reporting Intangible Costs

Hanks Co. recorded the following amounts for 2020. o Research and development costs, $50,000. o Patent, acquired on January 1, 2020, 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, 2020, to register a patent (internally developed, 15-year useful life), $5,000. a. Determine the amounts to be included on the balance sheet on December 31, 2020. Assume no asset is impaired. Balance Sheet, Dec. 31, 2020 Prepaid expense $ Patents, net Goodwill Customer list b. Determine amounts to be included on the income statement for the year 2020. Assume no impairment losses were recorded. Income Statement, for the Year Ended Dec. 31, 2020 Research and development expense $ Amortization expense Other operating expense