Munn Inc. reported its Other noncurrent asset account balances on December $31$ of Year $2$ as follows.

Information relating to these Other noncurrent assets for Year $3$ follows.

The patent was purchased from Grey Company on January $2$ of Year $1,$ when the remaining legal life was $16$ years.

On January $2$ of Year $3,$ Munn determined that the remaining useful life of the patent was only six more years.

On January $2$ of Year $3,$ in connection with the purchase of a trademark from Cody Corp., the parties entered into a

noncompete agreement. Munn paid Cody $$1,440,000,$ of which $75\%$ related to the trademark and $25\%$ reflected Cody's

agreement not to compete for a period of five years in the line of business covered by the trademark. Munn considers

the life of the trademark to be indefinite.

On January $1$ of Year $3,$ Munn acquired all the noncash assets and assumed all liabilities of Amboy Company at a

cash purchase price of $$2,160,000.$ Munn determined that the fair value of the identifiable net assets acquired in the

transaction is $$1,440,000.$

Munn incurred the following research and development costs in Year $3.$

Required

a$.$ Prepare a schedule of amortization for Year $3$ showing amortization expense that applies to each intangible asset.

The company amortizes intangible assets using the straight$-$line method.

b$.$ Prepare the balance sheet presentation of intangible assets for Munn on December $31$ of Year $3,$ and the income

statement presentation for the year ended December $31$ of Year $3.$

Note: Do not use negative signs with any of your answers.