E$8-20($Algo$)$ Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets L$08-6$

Trotman Company had three intangible assets at the end of the current year:

a$.$ Computer software and website development technology purchased on January $1$ of the prior year for $$80,000.$ The technology is expected to have a four$-$year useful life to the company with no residual value.

b$.$ A patent purchased from lan Zimmer on January $1$ of the current year for a cash cost of $$21,000.$ Zimmer had registered the patent with the U$.$S$.$ Patent and Trademark Office five years ago. Trotman intends to use the patent for its remaining life.

c$.$ A trademark purchased for $$21,000$ on November $1$ of the current year. Management decided the trademark has an indefinite life.

Required:

Compute the amortization of each intangible at December $31$ of the current year. The company does not use contra$-$accounts.

$2$a$.$ Show how the expenses related to the three intangible assets should be reported on the income statement for the current year.

$2$b$.$ Show how the three intangible assets should be reported on the balance sheet for the current year.

Complete this question by entering your answers in the tabs below.

Req$2B$

Compute the amortization of each intangible at December $31$ of the current year. The company does not use contra$-$accounts.

$\backslash$table$[[,$Amortization$],[$Technology$,],[$Patent$,],[$Trademark$,]]$

Trotman Company had three intangible assets at the end of the current year:

a$.$ Computer software and website development technology purchased on January $1$ of the prior year for $$80,000.$ The technology is expected to have a four$-$year useful life to the company with no residual value.

b$.$ A patent purchased from lan Zimmer on January $1$ of the current year for a cash cost of $$21,000.$ Zimmer had registered the patent with the U$.$S$.$ Patent and Trademark Office five years ago. Trotman intends to use the patent for its remaining life.

c$.$ A trademark purchased for $$21,000$ on November $1$ of the current year. Management decided the trademark has an indefinite life.

Required:

Compute the amortization of each intangible at December $31$ of the current year. The company does not use contra$-$accounts.

$2$a$.$ Show how the expenses related to the three intangible assets should be reported on the income statement for the current year.

$2$b$.$ Show how the three intangible assets should be reported on the balance sheet for the current year.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2B$

Show how the three intangible assets should be reported on the balance sheet for the current year.

$\backslash$table$[[$TROTMAN COMPANY,$],[$Balance Sheet,$],[$December $31$ of the current year $($Partial$),,],[$Intangibles:$,,],[,,],[,,],[,,],[,,]]$