Munn Inc. reported other noncurrent asset account balances on December 31, 2020, as follows.

Patent	$384,000
Accumulated amortization	(48,000)
Net patent	$336,000

Transactions during 2021 and other information relating to Munns other noncurrent assets include the following.

1. The patent was purchased from Grey Company on January 2, 2019, when the remaining legal life was 16 years. On January 1, 2021, Munn determined that the remaining useful life of the patent was only eight years from the date of its acquisition.

2. On January 1, 2021, in connection with the purchase of a trademark from Cody Corp., the parties entered into a noncompetition agreement. Munn paid Cody $1,600,000, of which 75% related to the trademark and 25% reflected Codys 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.

3. On January 1, 2021, Munn acquired all the noncash assets and assumed all liabilities of Amboy Company at a cash purchase price of $2,400,000. Munn determined that the fair value of the identifiable net assets acquired in the transaction is $1,600,000.

4. Munn incurred the following research and development costs in 2021.

Salaries and related expenses related to development of patents	$250,000
Supplies	30,000
Allocated facility costs	40,000

Required

a. Prepare a schedule of amortization for 2021 relating to Munns intangible assets assuming straight-line amortization.

2021 Amortization Expense
Patent
Noncompete agreement
Total

b. Prepare the balance sheet presentation of intangible assets for Munn on December 31, 2021, and the income statement presentation for the year ended December 31, 2021.

Munn Inc. Balance Sheet December 31, 2021
Intangible assets
Patent, net
Trademark
Noncompete agreement, net
Goodwill

Munn Inc. Income Statement For the year ended December 31, 2021
Other expenses
Amortization expense
Research and development expense