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Brief Exercise 13-27 anks Co. recorded the following amounts for 2020. Research and development costs, $50,000. Patent, acquired on January 1,2020, with 10-year useful life, $35,000. Goodwill from purchase of a company, $100,000. Acquired customer list with an indefinite useful life, $20,000. Legal fees paid on December 31, 2020, to register a patent (internally developed, 15-year useful life), $5,000 Determine the amounts to be included on the balance sheet on December 31, 2020. Assume no asset is impaired. Determine amounts to be included on the income statement for the year 2020. Assume no impairment losses were recorded Costs LO2
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Answer #1
a) Patents (35000-35000/10)+5000 36500
Goodwill 100000
Customer list 20000
b) Research and development expense 50000
Amortization expense-Patents 3500
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