cambridge company had three intangible assets at the end of 252091

Cambridge Company had three intangible assets at the end of 2012 (end of the accounting year):

a. A copyright purchased on January 1, 2011 for a cash cost of $12,300. The copyright is expected to have a ten-year useful life to Cambridge.

b. Goodwill of $65,000 from the purchase of the Hartford Company on July 1, 2010.

c. A patent purchased on January 1, 2012 for $39,200 from the inventor who had registered the patent with the U.S. Patent Office on January 1, 2006.

Required:

1. Compute the acquisition cost of each intangible asset.

2. Compute the amortization of each intangible at December 31, 2012. 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 2012. (Assume there has been no impairment of goodwill.)

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