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.
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.)