Compute the acquisition cost of each intangible asset

Assignment Help Financial Management

Reference no: EM131536534

Bluestone Company had three intangible assets at the end of the current year:

a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $3,600. When purchased, the patent had an estimated life of 12 years.

b. A trademark was registered with the federal government for $10,500. Management estimated that the trademark could be worth as much as $250,000 because it has an indefinite life.

c. Computer licensing rights were purchased this year on January 1 for $40,000. 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. (Do not round intermediate calculations.)

3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.

Reference no: EM131536534

Questions Cloud

Explain how crowding out works : Explain how crowding out works, using the one-period model as an example. Please use the graph and words to explain.

Units of output while minimizing cost of production : How much labor and capital should the firm hire if it wants to produce 10 units of output while minimizing its cost of production? Show your work.

Determining what evidence reveals to you about a crime : Criminal Justice: The reliability of eyewitness testimony, or Determining what evidence reveals to you about a crime

Show the given balances at the close of business : The books of Francis Macarthy, a wholesale dealer in toys, showed the following balances at the close of business on 30th June, 1962.

Compute the acquisition cost of each intangible asset : Bluestone Company had three intangible assets at the end of the current year: Compute the acquisition cost of each intangible asset.

Calculate the differences between the two payment streams : Calculate the differences between the two payment streams; then find its IRR.

What is the range of prices : What is the range of prices for which the firm would shut down, in the short run? Explain.

Discuss the case of g gardham : On 1st January, 1962 the Provision for Bad Debts Account in the books of G. Gardham showed a credit balance of £230. During the following twelve months.

Discuss early warning signs and assessment methods : Discuss early warning signs, and assessment methods that can be used to manage disorder. Is it possible to treat disorder before criminal tendencies develop?

User Account

All Pages