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E8-21 (Algo) Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets LO8-6

Springer Company had three intangible assets at the end of 2020 (end of the accounting year):

1. A copyright purchased on January 1, 2020, for a cash cost of $15,700. The copyright is expected to have a 10-year useful life to Springer.
2. Goodwill of $77,000 from the purchase of the Hartford Company on July 1, 2019.
3. A patent purchased on January 1, 2019, for $56,000. 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 amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra-accounts.

2a. Show how the expenses related to the three intangible assets should be reported on the income statement for 2020.

2b. Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no impairment of goodwill.)

Reg 1 Reg 2A Reg 2B Compute the amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra-accounts. Amortization Copyright Goodwill Patent Show how the expenses related to the three intangible assets should be reported on the income statement for 2020. SPRINGER COMPANY Income Statement for 2020 (partial) Operating expenses: Reg 1 Reg 2A Reg 2B Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no impairment of goodwill.) SPRINGER COMPANY Balance Sheet December 31, 2020 (partial) Intangibles

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