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Q:
Reporting and Computing the Acquisition and Amortization of three Different Intangible Assets
Kreiser Company had three intangible assets at the end of 2010 (end of the accounting year):
a. A patent purchased from J. Miller on 1st January, 2010, for a cash cost of $6,900. When purchased, the patent had an evaluated life of fifteen years.
b. A trademark was registered with the federal government for $11,200. Management evaluated that the trademark could be worth as much as $200,000 because it has an indefinite life.
c. Computer licensing rights were purchased on 1st January, 2010, for $51,000. The rights are expected to have a four-year useful life to the company.
Requirement:
Evaluate the acquisition cost of each intangible asset
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