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Starn Tool & Manufacturing Company, located in Meadville, PA, provides component machining for robotics, drones, vision systems, and special machines and assemblies for the aerospace,

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Starn Tool & Manufacturing Company, located in Meadville, PA, provides component machining for robotics, drones, vision systems, and special machines and assemblies for the aerospace, military, commercial, automotive, and medical industries. Assume the company has five different intangible assets to be accounted for and reported on the financial statements. The management is concerned about the amortization of the cost of each of these intangibles. Facts about each intangible follow: a. Patent. The company purchased a patent for a new tool at a cash cost of $66,300 on January 1, 2020 The patent has an estimated useful life of 13 years b. Copyright. On January 1, 2020, the company purchased a copyright for $26,500 cash. It is estimated that the copyrighted item will have no value by the end of 10 years. Franchise. The company obtained a franchise from H & H Tool Company to make and distribute a special item for the automotive industry. It obtained the franchise on January 1, 2020, at a cash cost of $15,200 for a 10-year period. d. License. On January 1, 2019, the company secured a license from the city to operate a special service for a period of five years. Total cash expended to obtain the license was $14,800. e Goodwill. The company purchased another business in January 2017 for a cash lump sum of $480,000. Included in the purchase price was "Goodwil, $48,000. Company executives stated that the goodwill is an important long lived asset to us. It has an indefinite life. Required: 1. Compute the amount of amortization that should be recorded for each intangible asset at the end of the annual accounting period, December 31, 2020 Answer is complete but not entirely correct. Patent Copyright Franchise License Goodw $ $ $ 5.100 2,650 1,520 2,960 48.000 d $ 5 2. Determine the book value of each intangible asset on December 31, 2021. a b Answer is complete but not entirely correct. Book Value Item Dec 31, 2021 Patent S 66,300 Copyright 26,500 Franchise 15,200 License 14,600 Goodwill 48,000 Total book value $ 170,600 c d 3. Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $19,400. The fale value of the copyright was determined to be $18,400. Compute the amount, if any, of the impairment loss to be recorded. Answer is complete but not entirely correct. Impairment foss $1,000

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