Reference no: EM132713019

Copyright, #1 $ 48,000 Less: Accumulated amortization 24,000 Copyright #1, net 24,000 Trademark 54,000 Goodwill 125,000 Total $203,000 Copyright #1 was acquired on January 1, 2012 and has a useful life of four years. The company amortizes any copyright using straight-line method. The trademark was acquired on January 1, 2010 and is expected to have an indefinite life. The company has a December 31 year-end. The following cash transactions may have affected intangible assets and goodwill during 2014: July 1: Developed a new software, incurring $210,000 in research and $50,000 in development costs. The development phase ended on July 1. The product is expected to have a useful life of 20 years with double-declining-balance method of amortization. The software is unlikely to have any salvage value after its useful life. July 5: Paid $7,000 in legal costs to successfully defend the trademark against infringement by another company. Sep 1: Paid $60,000 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September. Oct 1: Acquired another copyright (Copyright #2) for $180,000. The new copyright has a useful life of three years. Dec 31: Determined the recoverable amount of the trademark and goodwill to be $65,000 and $90,000, respectively. There was no indication that any other assets were impaired.

Problem 1: Show the intangible assets and goodwill should be presented on the statement of financial position as at december 31 2014