The CMS Co. began operations in January 2019. Listed below are selected transactions for 2019 and 2020: During 2019, $125,000 in R&D expenditures were made to develop a new product that was patented on July 1, 2019. CMS believes the patent will provide benefits for ten years. Legal fees incurred on July 1, 2019 were $24,000. On September 1, 2019, CMS paid EZ Company $180,000 for its patent on a successful product. The patent has six remaining years in its legal life. On October 1, 2019, CMS applied for and received a trade name from the government. The legal costs associated with filing for the trade name were $10,000. In addition, during November 2019, the company incurred $50,000 in advertising its name. Benefits are expected indefinitely. In early January 2020, CMS paid $20,000 in legal fees to defend the patent acquired from EZ. CMS's attorneys were successful in the lawsuit. During 2020, R&D expenditures of $90,000 were incurred in the development of a product. A patent was received on December 1, 2020. Legal fees paid in connection with the patent were $15,000. The economic life of the product is expected to be five years. Required: a1. Determine the book value as of December 31, 2020 for each intangible asset. The company amortizes its intangible assets using the straight-line method and recognizes amortization to the nearest month. Patent on product developed in 2019 Patent purchased from EZ Company Trade name Patent on product developed in 2020 a2. Prepare a partial balance sheet for CMS Company as of December 31, 2020, showing the intangible assets. CMS Company Partial Balance Sheet December 31, 2020 Intangible assets: a2. Prepare a partial balance sheet for CMS Company as of December 31, 2020, showing the intangible assets. CMS Company Partial Balance Sheet Intangible assets: December 31, 2020 2019 amortization Book value of patent Legal fees, 2020 Noncompete agreement Patents b. Prepare a schedule to calculate CMS's expenses related to the above transactions for both 2019 and 2020. Enter all amounts as positive numbers. Total expenses Total expenses 2019 Expense 2020 Expense Intangible assets: CMS Company Partial Balance Sheet December 31, 2020 Total intangible assets b. Prepare a schedule to calculate CMS's expenses related to the above transactions for both 2019 and 2020. Enter all amounts as positive numbers. 2019 Expense Cost of trademark Legal fees Loss on Impairment R and D expense Trademark Total expenses 2020 Expense Intangible assets: CMS Company Partial Balance Sheet December 31, 2020 Total intangible assets b. Prepare a schedule to calculate CMS's expenses related to the above transactions for both 2019 and 2020. Enter all amounts as positive numbers. 2019 Expense Amortization expense-Patents Cost of trademark Legal fees Loss on Impairment Trademark Total expenses 2020 Expense Intangible assets: CMS Company Partial Balance Sheet December 31, 2020 Total intangible assets b. Prepare a schedule to calculate CMS's expenses related to the above transactions for both 2019 and 2020. Enter all amounts as positive numbers. 2019 Expense Advertising expense Cost of trademark Legal fees Loss on Impairment Trademark Total expenses 2020 Expense Intangible assets: Partial Balance Sheet December 31, 2020 Total intangible assets b. Prepare a schedule to calculate CMS's expenses related to the above transactions for both 2019 and 2020. Enter all amounts as positive numbers. 2019 Expense Total expenses Cost of trademark Legal fees Loss on Impairment R and D expense Trademark 2020 Expense Intangible assets: Partial Balance Sheet December 31, 2020 Total intangible assets b. Prepare a schedule to calculate CMS's expenses related to the above transactions for both 2019 and 2020. Enter all amounts as positive numbers. 2019 Expense Total expenses Amortization expense-Patents Cost of trademark Legal fees Loss on Impairment Trademark 2020 Expense Previous