Reference no: EM132894321

Titans acquired two intangible assets between 2015 and 2016.

• A patent related to a novel investment strategy that was purchased on January 1, 2015, for $50,000. Titans incurred $120,000 to defend this patent on the same date and they received good news that its patent was valid. Titans also paid $50,000 for registration of the patent. This patent is estimated to have a useful life of 10 years.
• A copyright (investment lecture material) was developed internally at a cost of $24,000 on January 1, 2016. Titans also incurred $16,000 to register the copyright. This lecture material as an indefinite useful life.

Problem 1: At what amount should patent (net of accumulated amortization) on the December 31, 2016 balance sheet, assuming straight line basis amortization?

Select one:

a. 136,000

b. 176,000

c. 198,000

d. 220,000

Problem 2: At what amount should copyright (net of accumulated amortization) on the December 31, 2016 balance sheet, assuming straight line basis amortization?

Select one:

a. 16,000

b. 32,000

c. 12,800

d. 40,000