Trotman Company had three intangible assets at the end of 2016 (end of the accounting year): a. Computer software and Web development technology purchased on January 1, 2015, for $71,000. The technology is expected to have a four-year useful life to the company. b. A patent purchased from Ian Zimmer on January 1, 2016, for a cash cost of $27,000. Zimmer had registered the patent with the U.S. Patent Office five years ago. c. A trademark purchased for $29,000 on November 1, 2016. Management decided the trademark has an indefinite life.

3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2016. TROTMAN COMPANY Income Statement for 2016 (partial) Operating expenses Note receivable Patent Repair and maintenance expense Technology Trademark Truck TROTMAN COMPANY Balance Sheet December 31, 2016 (partial) Intangibles Loss on sale Note payable Note receivable Patent Repair and maintenance expense Technology Trademark