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amortization was taken in the year of acquisition. Intangible assets, at cost less accumulated amortization Copyrights Patents Customer Lists $

amortization was taken in the year of acquisition. Intangible assets, at cost less accumulated amortization Copyrights Patents Customer Lists $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Show how the intangible assets section of the statement of financial position would be presented four years after acquisition of these assets, assuming that there has been no evidence that their values have been impaired. Assume that a full year of amortization was taken in the year of acquisition. Intangible assets, at cost less accumulated amortization Copyrights Patents Customer Lists Licences Total intangible assets $ $
Transcribed Image Text:Show how the intangible assets section of the statement of financial position would be presented four years after acquisition of these assets, assuming that there has been no evidence that their values have been impaired. Assume that a full year of amortization was taken in the year of acquisition. Intangible assets, at cost less accumulated amortization Copyrights Patents Customer Lists Licences Total intangible assets $ $
Sandhill Ltd. purchased several intangible assets, as follows: Asset Licences Customer lists (a) The following information is also available: Asset Licences Purchase Cost Customer lists Patents Copyrights $80,000 In addition to the costs listed above, there were legal fees of $15,100 associated with the licence acquisitions. The licences are valid in perpetuity, and sales of the products produced under the licences have been strong and are expected to continue at the same level for many decades. The customer lists are expected to be useful for the next six years. The patent has a legal life of 20 years, but technological changes are expected to render it worthless after about 8 years. The copyright is good for another 40 years, but nearly all the related sales are expected to occur during the next 10 years. $ 60,300 Calculate the annual amortization expense, if any, that should be recorded for each of these intangible assets, assuming the straight-line method is appropriate. (Do not leave any answer field blank. Enter O for amounts.) $ $ Asset $ Patent Annual amortization expense Copyright Purchase Cost $151,000 243,000
Transcribed Image Text:Sandhill Ltd. purchased several intangible assets, as follows: Asset Licences Customer lists (a) The following information is also available: Asset Licences Purchase Cost Customer lists Patents Copyrights $80,000 In addition to the costs listed above, there were legal fees of $15,100 associated with the licence acquisitions. The licences are valid in perpetuity, and sales of the products produced under the licences have been strong and are expected to continue at the same level for many decades. The customer lists are expected to be useful for the next six years. The patent has a legal life of 20 years, but technological changes are expected to render it worthless after about 8 years. The copyright is good for another 40 years, but nearly all the related sales are expected to occur during the next 10 years. $ 60,300 Calculate the annual amortization expense, if any, that should be recorded for each of these intangible assets, assuming the straight-line method is appropriate. (Do not leave any answer field blank. Enter O for amounts.) $ $ Asset $ Patent Annual amortization expense Copyright Purchase Cost $151,000 243,000
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