Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $6,000. When purchased, the patent had an estimated life of 12 years. b. A trademark was registered with the federal government for $4,000. Management estimated that the trademark could be worth as much as $120,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company. Required:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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6.
Bluestone Company had three intangible assets at the end of the current year:
a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $6,000. When purchased, the
patent had an estimated life of 12 years.
b. A trademark was registered with the federal government for $4,000. Management estimated that the
trademark could be worth as much as $120,000 because it has an indefinite life.
c. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to
have a six-year useful life to the company.
polnts
еВook
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References
1. Compute the acquisition cost of each intangible asset.
2. Compute the amortization of each intangible for the current year ended December 31.
3. Show how these assets and any related expenses should be reported on the balance sheet and income
statement for the current year.
Complete this question by entering your answers in the tabs below.
Reg 1
Reg 2
Reg 3A
Reg 3B
Compute the acquisition cost of each intangible asset.
Acquisition Cost
Patent
Trademark
Licensing Rights
< Req 1
Req 2 >
Transcribed Image Text:6. Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $6,000. When purchased, the patent had an estimated life of 12 years. b. A trademark was registered with the federal government for $4,000. Management estimated that the trademark could be worth as much as $120,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company. polnts еВook Print Required: References 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B Compute the acquisition cost of each intangible asset. Acquisition Cost Patent Trademark Licensing Rights < Req 1 Req 2 >
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