Question

Question 3 0.6 The intangible assets section of Martinez Corporation's balance sheet at December 31, 2017, is presented here. Patents ($78,100 cost less $7,810 amortization) $70.290 Copyrights ($42.000 cost less $29 400 amortization) 12600 $82,890 Total has a useful life of 10 years. The copyright was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018. Jan. 2 Paid $36,000 egal costs to successtully defend the patent against intringement by another company. Jan- June Developed a new product Incurring $257 500 in research and developmentcosts. A paten Sept. 1 Paid $42,000 to a quarterback commercials advertising the Oct. 1 Acquired a copyright for $261,000. The copyright has a useful life and legal life of 50 years. patent was granted for the product on July 1, and its useful life is equal to its lega life. Legal and other costs for the patent were $10,000. to appear in commercials advertising the company's products. The commercials will air in September and October Prepare the intangible assets section of the balance sheet at December 31, 2018. Martinez Corporation Balance Sheet (Partial) e Textbook and Media List of Accounts Attempts: 0 of 2 used Save

Answer 1

Balance Sheet (Partial)
December 31, 2018
Intangible Assets:
Patents	104230
Copyrights	266790
Total Intangible Assets	371020

Working note:

Patents:
Beg. Bal.	70290
Jan 2, 2018	36000
July 1, 2018	10000
	116290
Less Amortization expense	-12060
[($7810 + $36000/9 years) + ($10000/20 years * 6/12)]
End. Bal.	104230
Copyrights:
Beg. Bal.	12600
Oct 1, 2018	261000
	273600
Less Amortization expense	-6810
[($42000/10) + ($261000/50 years * 3/12)]
End. Bal.	266790