The intangible assets section of Cheyenne Corp.'s balance sheet at December 31, 2022, is presented here.Patents ($75,000 cost less $7,500 amortization)$67,500Copyrights ($53,400 cost less $37,380 amortization)16,020Total$83,520The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has auseful life of 10 years. The following cash transactions may have affected intangible assets during 2023.Jan. 2Paid $27,000 legal costs to successfully defend the patent against infringement by another company.Jan.-JulySept. 1Oct. 1Developed a new product, incurring $139,000 in research and development costs during February. A patent wasgranted 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 $50,000 to a quarterback to appear in commercials advertising the company's products. The commercials airedin September.Acquired a copyright for $126,000. The copyright has a useful life and legal life of 50 years. Prepare the intangible assets section of the balance sheet at December 31, 2023.Cheyenne Corp.Balance Sheet (Partial)$+A$

Balance sheet refers to the financial statement which shows the financial position of the company…

The intangible assets section of Cheyenne Corp.'s balance sheet at December 31, 2022, is presented here. Patents ($75,000 cost less $7,500 amortization) $67,500 Copyrights ($53,400 cost less $37,380 amortization) 16,020 Total $83,520 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. 2 Jan.-July Paid $27,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $139,000 in research and development costs during February. 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.

The intangible assets section of Cheyenne Corp.'s balance sheet at December 31, 2022, is presented here. Patents ($75,000 cost less $7,500 amortization) $67,500 Copyrights ($53,400 cost less $37,380 amortization) 16,020 Total $83,520 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. 2 Jan.-July Paid $27,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $139,000 in research and development costs during February. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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