lb company had the following balances in its intangible assets accounts at the begin 538671

Account for intangible assets (LO 3)

LB Company had the following balances in its intangible assets accounts at the beginning of the year. The patents have a remaining useful life of l0 years, and the copyright has a remaining useful life of 7 years.

Transactions during the year:

1. At the beginning of the year, LB filed for a new patent. The costs totaled $20,000. Its useful life is estimated at 10 years.

2. LB incurred R&D costs of $60,000 related to new product development’ No new products have been identified.

3. LB evaluated the goodwill for impairment and reduced its book value by $2,000.

4. LB successfully defended one of its patents in court. Fees totaled $ 24,000.

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 balances sheet at year-end.