Springer Company had three intangible assets at the end of 2020 (end of the accounting year):. a. A copyright purchased on January 1, 2020, for a cash cost of $14,500. The copyright is expected to have a 10-year useful life to Springer.
b. Goodwill of $65,000 from the purchase of the Hartford Company on July 1, 2019.
c. A patent purchased on January 1, 2019, for $48,000. The inventor had registered the patent with the U. S. Patent and Trademark Office on January 1, 2015. Springer intends to use the patent for its remaining life.
Required:
1. Compute the acquisition cost of each intangible asset. cquisition Cost Copyright Goodwill Patent 16,300 83,000 68,000
2. Compute the amortization expense of each intangible for the year ended December 31, 2017. The company does not use contra-accounts. (Assume the company uses straight-li method) (Do not round your intermediate calculations.) Amortization Copyright Goodwill Patent S 1,630
3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2017. (Assume there has been no impairment of goodwill.) SPRINGER COMPANY Income Statement for 2017 (partial) Operating expenses Amortization expense