A patent purchased from j miller on january 1 2010 for a

Reference no: EM13594808

Kreiser Company had three intangible assets at the end of 2010 (end of the accounting year):

a.A patent purchased from J. Miller on January 1, 2010, for a cash cost of $5,640. When purchased, the patent had an estimated life of fifteen years.

b.A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life.
c.Computer licensing rights were purchased on January 1, 2010, for $60,000. The rights are expected to have a four-year useful life to the company.

1.Compute the acquisition cost of each intangible asset

Patent:
Trademark:
Licensing rights:

2.Compute the amortization of each intangible for the year ended December 31, 2010.

Patent:
Trademark:
Licensing rights:

3.Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2010.
4.Balance sheet at December 31, 2010:

Reference no: EM13594808

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