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Cecilia Beaux entered into a franchise agreement with Old Towne Market. The franchise agreement has an initial term of $10$ years although Cecilia has the option to renew the agreement for an unspecified period of time. She incurred the following costs in setting up her new business:

Purchase of patent on a unique foot measuring tool, legal life $15$ years, indeterminate service life $$45,000$

Excess of purchase price over fair value in acquisition of net assets of former building owner $35,000$

Initial franchise fee $25,000$

Cost of customer list purchased from nearby retail clothing store to be used during first $2$ years of operations $10,000$

Cost of city$-$wide grand opening advertising campaign $8,000$

Cecilia opened the store on November $1,2019.$ On October $31,2019,$ how much of the above costs would be reported as Intangible assets $($indefinite life$)$ on the balance sheet? How much would be reported as Intangible assets $($finite life$)$ on the balance sheet?

Cecilia Beaux entered into a franchise agreement with Old Towne Market. The franchise agreement has an initial term of $10$ years although Cecilia has the option to renew the agreement for an unspecified period of time. She incurred the following costs in setting up her new business:

Purchase of patent on a unique foot measuring tool, legal life $15$ years, indeterminate service life $$45,000$

Excess of purchase price over fair value in acquisition of net assets of former building owner $35,000$

Initial franchise fee $25,000$

Cost of customer list purchased from nearby retail clothing store to be used during first $2$ years of operations $10,000$

Cost of city$-$wide grand opening advertising campaign $8,000$

Cecilia opened the store on November $1,2019.$ On October $31,2019,$ how much of the above costs would be reported as Intangible assets $($indefinite life$)$ on the balance sheet? How much would be reported as Intangible assets $($finite life$)$ on the balance sheet?

$$60,000$: $$55,000$

None of these

$$60,000$; $$63,000$

$$35,000$; $$80,000$

$$80,000$; $$35,000$

$$35,000$; $$88,000$

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