E9.4 (LO.1) The condensed balance sheet as of December 31, 2020, for Van Den Boom Enterprises follow Liabilities and Shareholders' Equity Assets Current assets Land $40,000 50,000 $90,000 Shareholders' equity Total liabilities and shareholders' expiry $35,000 35,000 $90,000 Sales and operating expenses other than amortization are predicted to be 565,000 and $20,000, respectively, across all three years in the finare - 2001, 2022, and 2023. All sales and operating expenses are reached or paid in cash. On January 1, 2021, Vin Den Boom pays 540,000 cash for an intangible asset. a. Assume that Van Den Boom Enterprises engaged in operating activities only during 2021, 2022, and 2023. Prepare income statements for 2021, 2022, and 2025 and the balance sheet as of December 31 for 2021, 2022, and 2023, assuming the $40,000 cash payment is treated in each of the following way (1) Immediately expensed (2) Capitalized and amortized evenly over two years Capitalized and amortized evenly over three years. Compute the tial income recognized over the there-year period under each assumption above What is interesting about the December 31, 2023, balance sheet prepared under all the aptin