The intangible assets section of Cedeno Corporation's balance sheet at December 31, 2014, is presented here
| Patents ($60,000 cost less $6,000 amortization) |
$54,000 |
| Copyrights ($36,000 cost less $25,200 amortization) |
10,800 |
| Total |
$64,800 |
The patent was acquired in January 2014 and has a useful life of 10 years. The copyright was acquired in January 2008 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2015.
| Jan. |
2 |
Paid $46,800 legal costs to successfully defend the patent against infringement by another company. |
| Jan.- |
June |
Developed a new product, incurring $230,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000. |
| Sept. |
1 |
Paid $40,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. |
| Oct. |
1 |
Acquired a copyright for $200,000. The copyright has a useful life and legal life of 50 years. |
Prepare the note to the financial statements on Cedeno Corporation's intangible assets as of December 31, 2015.