B C D E H 1 Exercise 4: Asynchronous Activity April 4 due Apr. 11 2 4. The CMS Co. began operations in January 2016. Listed below are selected transactions for 2016 and 2017: 3 During 2016, PI 25,000 in R&D expenditures were made to develop a new product that was patented on July 1, 2016. CMS believes the patent wilprovide benefits for ten years. Legal fees incurred were P24,000. On September 1, 2016, CMS paid EZ Company P180,000 for its patent on a successful product The patent has six remaining years in its legal life On October 1, 2016, CMS applied for and received a trade name from the government. The legal costs associated with filing for the trade name were P10,000. In addition, during November 2016, the company incurred P50,000 in advertising its name. Benefits are expected indefinitely. In early January 2017, CMS paid P20,000 in legal fees to defend the patent acquired from EZ. CMS's attorneys were successful in the lawsuit During 2017, R&D expenditures of P90,000 were incurred in the development of a product A patent was received on December 1, 2017. Legal fees paid in connection with the patent were P15, 000. The economic life of the product is expected to be five years. 9 Required Prepare a partial balance sheet for CMS Company as of December 31, 2017, showing the intangible assets In support of 10 your answer, prepare a separate schedule for each intangible asset. The company am ortizes its intangible assets using the straight-line method and recognizes a am ortization to the nearest month. 11 b Prepare a schedule to calculate CMSs expenses related to the above transactions for both 2016 and 2017. 12 13