Bluestone Company had three intangible assets at the end of the current year: a. A patent...

 

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Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Company on January 1 for a cash cost of $6,400. When purchased, the patent had an estimated life of 16 years. b. A trademark was registered with the federal government for $3,500. Management estimated that the trademark could be worth as much as $110,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $30,000. The rights are expected to have a five-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Show how these assets and any related expenses should be reported on the balance sheet for the current year. (Deductions should be indicated by a minus sign.) BLUESTONE COMPANY Balance sheet (partial) At December 31 Intangibles: Patents Trademark Licensing Rights Total Intangibles (net) 6,000 $ 3,500 $ 24,000 33,500 < Req 3A Req 3B *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Company on January 1 for a cash cost of $6,400. When purchased, the patent had an estimated life of 16 years. b. A trademark was registered with the federal government for $3,500. Management estimated that the trademark could be worth as much as $110,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $30,000. The rights are expected to have a five-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Show how these assets and any related expenses should be reported on the balance sheet for the current year. (Deductions should be indicated by a minus sign.) BLUESTONE COMPANY Balance sheet (partial) At December 31 Intangibles: Patents Trademark Licensing Rights Total Intangibles (net) 6,000 $ 3,500 $ 24,000 33,500 < Req 3A Req 3B *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

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Bluestone Company Intangible Assets Required 1 Acquisition Cost Asset Acquisition Cost Patent 640... View the full answer