Review the following information pertaining to Denzel Company.

1. A patent was purchased on January 2, 2018, for $117,000 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition.
2. On January 1, 2020, Denzel Company purchased a second patent for $144,000 cash. On January 1, 2020, 6 years of the patent's legal life of 20 years had already expired.
3. On June 30, 2020, Denzel Company paid a firm $14,400 for a new trademark. Denzel considers the life of the trademark to be indefinite.
4. On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $216,000. Denzel determined that the fair value of the identifiable net assets acquired in the transaction is $210,600.

a) What is the carrying value of intangible assets on December 31, 2020? Assume no impairment losses were recognized in prior periods.

b) What is the amortization expense for 2020?

Answer rating: 100% (QA)

Solution a Computation of carrying value of intangible assets on December 31 2020 For the first pate... View the full answer