3 A trademark was purchased from Shanghai Company for 36000 on July 1 2007

3 a trademark was purchased from shanghai company for

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3 A trademark was purchased from Shanghai Company for $36,000 on July 1, 2007.  Expenditures for successful litigation in defense of the trademark totaling $10,200  were paid on July 1, 2010. Sandro estimates that the useful life of the trademark will be 20 years from the date of acquisition. Instructions (a)Prepare a schedule showing the intangible assets section of Sandro's balance  sheet at December 31, 2010. Show supporting computations in good form?
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2010. Show supporting computations in good form.   Sandro Corporation           Expenses Resulting from Selected Intangible Assets Transactions                            For the Year Ended December 31, 2010  Interest expense ($43,700 X 14%) $6,118  Franchise amortization (Schedule 1) 5,870 Franchise fee ($900,000 X 5%) 45,000 Patent amortization (Schedule 2) 2,200 Trademark amortization (Schedule 4)  2,100 Total intangible assets $61,288  Note: The $65,000 of research and development costs incurred in developing  the patent would have been expensed prior to 2010.       Schedule 4 Trademark Amortization  Amortization, 1/1/10 to 6/30/10 ($36,000 X 1/20 X 6/12) $900  Amortization, 7/1/10 to 12/31/10 ($40,800 X 1/17 X 6/12)] 1,200 Total trademark amortization $2,100 
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Problem 12-5  (Goodwill, Impairment) On July 31, 2010, Mexico Company paid $3,000,000 to acquire all of the common  stock of Conchita Incorporated, which became a division or Mexico. Conchita reported the following balance sheet at the time of acquisition.
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