At the end of the accounting year, 2020, the Springer Company had three intangible assets described below. A copyright purchased on January 1, 2020, for a cash cost of $14,900. The copyright is expected to have a 10-year useful life to Springer Company. Goodwill of $69,000 from the purchase of the Kristy Company on July 1, 2019. A patent purchased on January 1, 2019, for $40,000. The inventor had registered the patent with the U. S. Patent and Trademark Office on January 1, 2015. Springer Company intends to use the patent for its remaining life.
Required:
a. Compute the amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra-accounts.
b. Show how the expenses related to the three intangible assets should be reported on the income statement for 2020.
c. Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no impairment of goodwill.)
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At the end of the accounting year, 2020, the Springer Company had three intangible assets described...
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