Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets Springer Company had three intangible assets at the end of 2014 (end of the accounting year):
a. A copyright purchased on January 1, 2014, 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, 2013.
c. A patent purchased on January 1, 2013, for $48,000. The inventor had registered the patent with the U. S. Patent Office on January 1, 2009.
Required:
1. Compute the acquisition cost of each intangible asset.
2. Compute the amortization of each intangible at December 31, 2014. The company does not use contra-accounts.
3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2014. (Assume there has been no impairment of goodwill.)