cms company

Project Description:

the cms co. began operations in january 2014. listed below are selected transactions for 2014 and 2015:

during 2014, $125,000 in r&d expenditures were made to develop a new product that was patented on july 1, 2014. cms believes the patent will provide benefits for ten years. legal fees incurred were $24,000.
on september 1, 2014, cms paid ez company $180,000 for its patent on a successful product. the patent has six remaining years in its legal life.
in early january 2015, cms paid $20,000 in legal fees to defend the patent acquired from ez. cms's attorneys were successful in the lawsuit.
during 2015, r&d expenditures of $90,000 were incurred in the development of a product. a patent was received on december 1, 2015. legal fees paid in connection with the patent were $15,000. the economic life of the product is expected to be five years.

a) prepare a partial balance sheet for cms company as of december 31, 2015, showing the intangible assets. in support of your answer, prepare a separate schedule for each intangible asset. the company amortizes its intangible assets using the straight-line method and recognizes amortization to the nearest month.

b) prepare a schedule to calculate cms's expenses related to the above transactions for both 2014 and 2015.
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Price Type: Negotiable

Total Proposals: 6
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