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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 $57,200 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 $23,000 cash. It is estimated that the copyrighted item will have no value by the end of 10 years. C. 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 $14.500 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 $14,100. e Goodwill. The company purchased another business in January 2017 for a cash lump sum of $410,000. Included in the purchase price was "Goodwill $41.000." 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 a. Patent b. Copyright c. Franchise d. License e. Goodwill 2. Determine the book value of each intangible asset on December 31, 2021. Book Value Dec. 31, 2021 Item a. Patent b. Copyright c. Franchise d. License e. Goodwill Total book value $ 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 $17,300. The fair value of the copyright was determined to be $16,300. Compute the amount, if any of the impairment loss to be recorded. Impairment loss

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