FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- A patent was acquired from another company on January 1, 2019, for $25,000.The useful life is 10 years.
- On April 2, 2019, the company was successful in obtaining a patent. The legal fees paid to an outside law firm were $8,400. The development costs paid to engineers who were employees of Bishop were $75,000. The useful life is 10 years.
- On July 1, 2019, Bishop acquired all the assets net of the liabilities of Fargo Company. The identifiable net assets’ market values at the time of purchase totaled $100,000. Bishop acknowledged the superior earnings and loyal customer following of Fargo Company. Therefore, Bishop and Fargo agreed on a total purchase price of $145,000. Any
goodwill arising from the purchase is not to be amortized. - On December 31, 2019, Bishop paid a consulting firm $17,000 to develop a trademark. In addition, legal fees paid in connection with the trademark were $3,000. Assume a useful life of 20 years.
- On August 1, 2019, Bishop acquired intangible asset with an indefinite useful life for $3,700.
Required
- Determine the amortization expense for 2019.
- Determine the book value of each of the intangible assets.
Explain your calculations.
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