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This task consists of two (2) parts: Audit of intangible assets and prepayments, and audit of current liabilities. Presented below are a series of unrelated

This task consists of two (2) parts: Audit of intangible assets and prepayments, and audit of current liabilities.

Presented below are a series of unrelated situations. Determine the requirements for each independent case. Show your computations in good form.

AUDIT OF INTANGIBLE ASSETS AND PREPAYMENTS

Case 1: KABOOM LABORATORIES

Kaboom Laboratories holds a valuable patent (No. 1122098) on a device that prevents certain types of air pollution. Kaboom does not manufacture or sell the products and processes it develops; it conducts research and develops products, which it patents, and then assigns the patents to manufacturers on a royalty basis. The history of Patent No. 1122098 is as follows:

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