Revenue/Gain Expense/Loss Net Income Assets Liabilities Equity 1. NE +50 --50 --50 NE --50 11. NE +500 --500 --500 NE --500 III. NE +100 --100 --100 NE --100 IV. NE V. NE NE +100 NE NE NE NE --100 NE +100 --100 Match the effect that the transaction below would have on Cathy Company's Income Statement and Balance Sheet. Choose (I), (II), (III), (IV), or (V) from the grid. For example, if the transaction were "Collected cash on accounts receivable," the correct answer would be (IV) because there is no effect on revenue, expense, net income, overall assets, liabilities, or equity. Transaction: On 12/31, Cathy recorded one year of amortization on a purchased patent that cost $500. The patent has a remaining legal life of 10 years and an economic life of 5 years. NOTE: This question is only asking for the effect of recording amortization (not the purchase of the patent). O III OIV 01 OV