Q1: Wyatt Company had three intangible assets at the end of 2024 (end of the fiscal year): Computer software and Web development technology purchased on January 1, 2024, for $70,000. The technology is expected to have a useful life of four years. A patent purchased from R. Jay on January 1, 2024 for a cash cost of $6,000. Jay had registered the patent with the Canadian Intellectual Property Office seven years earlier on January 1, 2017. The cost of the patent is amortized over its legal life. A trademark that was internally developed and registered with the Canadian government for $13,000 on November 1, 2023. Management decided that the trademark has an indefinite life. Required: 1. What is the acquisition cost of each intangible asset? tech 70k patent 6k trademark 13k 2. Compute the amortization of each intangible asset at December 31, 2024. The company does not use contra accounts. (Round the final answers to the nearest whole dollar.) tech 17.5k patent: ???? 3-a. Compute the amount of amortization on the statement of earnings for 2024. (Round the intermediate calculations to nearest dollar amount.) amount of amortization: ???? 3-b. Show how these assets and any related expenses should be reported on the statement of financial position at December 31, 2024. (Round the intermediate calculations to nearest dollar amount.) technology net: 52.5k patent, net: ???? trademark: 13k

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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Q1:

Wyatt Company had three intangible assets at the end of 2024 (end of the fiscal year):

Computer software and Web development technology purchased on January 1, 2024, for $70,000. The technology is expected to have a useful life of four years.

A patent purchased from R. Jay on January 1, 2024 for a cash cost of $6,000. Jay had registered the patent with the Canadian Intellectual Property Office seven years earlier on January 1, 2017. The cost of the patent is amortized over its legal life.

A trademark that was internally developed and registered with the Canadian government for $13,000 on November 1, 2023. Management decided that the trademark has an indefinite life.

Required:

1. What is the acquisition cost of each intangible asset?

tech 70k

patent 6k

trademark 13k

2. Compute the amortization of each intangible asset at December 31, 2024. The company does not use contra accounts. (Round the final answers to the nearest whole dollar.)

tech 17.5k

patent: ????

3-a. Compute the amount of amortization on the statement of earnings for 2024. (Round the intermediate calculations to nearest dollar amount.)

amount of amortization: ????

3-b. Show how these assets and any related expenses should be reported on the statement of financial position at December 31, 2024. (Round the intermediate calculations to nearest dollar amount.)

technology net: 52.5k

patent, net: ????

trademark: 13k

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