Problem 9-4A (Part Level Submission)

The intangible assets section of Cedeno Corporations balance sheet at December 31, 2014, is presented here.

Patents ($78,600 cost less $7,860 amortization)		$70,740
Copyrights ($61,300 cost less $42,910 amortization)		18,390
Total		$89,130

The patent was acquired in January 2014 and has a useful life of 10 years. The copyright was acquired in January 2008 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2015.

Jan.	2		Paid $54,000 legal costs to successfully defend the patent against infringement by another company.
Jan.	June		Developed a new product, incurring $248,600 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000.
Sept.	1		Paid $60,600 to a quarterback to appear in commercials advertising the companys products. The commercials will air in September and October.
Oct.	1		Acquired a copyright for $230,000. The copyright has a useful life and legal life of 50 years.