Sharp Company Owns a Copyright and a Patent

Essay

Sharp Company owns a copyright and a patent.The copyright was acquired at a cost of $160,000 and the patent was purchased for $475,000.The copyright has an estimated useful life of 25 years and the patent has a 19-year estimated useful life.Both assets have estimated salvage values of zero.
Required:
1.Describe this information's effect on the income statement.Assume the assets are used for a full year.
2.Calculate the balance sheet carrying value of each asset after three years of use.
3.Explain how intangible assets have value.