Intangible Assets 8-year franchise; expiration date 6/30/22 Advance payment on laboratory space (2-year lease) Net loss for 2014 including governmental incorporation fee, €1,000, and related legal fees of organizing, €5,000 (all fees incurred in 2014) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs (development costs of €45,000 incurred related to 1/2/15 patent, which has achieved economic viability) 7/1/14 € 48,000 10/1/14 24,000 12/31/14 16,000 1/2/15 84,000 75,000 278,400 12,650 3/1/15 4/1/15 6/1/15 9/1/15 160.000

Intangible Assets 8-year franchise; expiration date 6/30/22 Advance payment on laboratory space (2-year lease) Net loss for 2014 including governmental incorporation fee, €1,000, and related legal fees of organizing, €5,000 (all fees incurred in 2014) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs (development costs of €45,000 incurred related to 1/2/15 patent, which has achieved economic viability) 7/1/14 € 48,000 10/1/14 24,000 12/31/14 16,000 1/2/15 84,000 75,000 278,400 12,650 3/1/15 4/1/15 6/1/15 9/1/15 160.000

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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