larkin company had the following balances in its intangible asset accounts at the be 538681

Account for intangible assets.( LO 3)

Larkin Company had the following balances in its intangible asset accounts at the beginning of the year. The trademarks have a remaining useful life of 5 years, and the copyright has a remaining useful life of 10 years.

Transactions during the year:

1. At the beginning of the year, Larkin filed for a new trademark. The costs totaled $40,000. Its useful life is estimated at 5 years.

2. Larkin incurred R&D costs of $30,000, related to new product development. No new products have been identified.

3. Larkin evaluated the goodwill for impairment and reduces its book value by $20,000.

4. Larkin successfully defended its copyrights in court. Fees totaled $10,000.

Required

Show each of the transactions in the accounting equation, including any adjustments that would need to be made for the year-end financial statements. Then, prepare the intangible assets section of the balance sheet at year-end.