E$9-14($Algo$)$ Computing and Reporting the Acquisition and Amortization of Three Different Intangible

Assets $[$LO $9-6]$

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

a$.$ A patent purchased this year from Miller Company on January $1$ for a cash cost of $$7,500.$ When purchased, the patent had an

estimated life of $15$ years.

b$.$ A trademark was registered with the federal government for $$6,500.$ Management estimated that the trademark could be worth as

much as $$170,000$ because it has an indefinite life.

c$.$ Computer licensing rights were purchased this year on January $1$ for $$60,000.$ The rights are expected to have a five$-$year useful life

to the company.

Required:

Compute the acquisition cost of each intangible asset.

Compute the amortization of each intangible for the current year ended December $31.$

Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current

year.