The intangible assets section of Pina Corporation's balance sheet at December 31, 2022, is presented here. Patents ($73,300 cost less $7,330 amortization) Copyrights ($57,000 cost less $39,900 amortization) Total The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also hasa a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. Jan- Sept $65.970 17,100 $83,070 2 Paid $54,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $241,500 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000. Paid $68,000 to a quarterback to appear in commercials advertising the company's products. The commercials June 1
The intangible assets section of Pina Corporation's balance sheet at December 31, 2022, is presented here. Patents ($73,300 cost less $7,330 amortization) Copyrights ($57,000 cost less $39,900 amortization) Total The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also hasa a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. Jan- Sept $65.970 17,100 $83,070 2 Paid $54,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $241,500 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000. Paid $68,000 to a quarterback to appear in commercials advertising the company's products. The commercials June 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare the intangible assets section of the balance sheet at December 31, 2023.
Pina Corporation
Balance Sheet (Partial)
$
Transcribed Image Text:The intangible assets section of Pina Corporation's balance sheet at December 31, 2022, is presented here.
Patents ($73,300 cost less $7,330 amortization)
Copyrights ($57,000 cost less $39,900 amortization)
Total
The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has
a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023.
Jan.
Jan June
Sept.
2
Oct.
$65.970
17,100
$83,070
1
Paid $54,000 legal costs to successfully defend the patent against infringement by another company.
Developed a new product, incurring $241,500 in research and development costs. A patent was granted for the
product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000.
Paid $68,000 to a quarterback to appear in commercials advertising the company's products. The commercials
will air in September and October.
1 Acquired a copyright for $275,000. The copyright has a useful life and legal life of 50 years.
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