Q:

Reporting and Computing the Acquisition and Amortization of three Different Intangible Assets

Kreiser Company had three intangible assets at the end of 2010 (end of the accounting year):

a. A patent purchased from J. Miller on 1^st January, 2010, for a cash cost of $6,900. When purchased, the patent had an evaluated life of fifteen years.

b. A trademark was registered with the federal government for $11,200. Management evaluated that the trademark could be worth as much as $200,000 because it has an indefinite life.

c. Computer licensing rights were purchased on 1^st January, 2010, for $51,000. The rights are expected to have a four-year useful life to the company.

Requirement:

Evaluate the acquisition cost of each intangible asset