Trotman Company had three intangible assets at the end of 2013 (end of the accounting year):

a.Computer software and Web development technology purchased on January 1, 2012, for $72,000. The technology is expected to have a four-year useful life to the company.

b.A patent purchased from Ian Zimmer on January 1, 2013, for a cash cost of $21,000. Zimmer had registered the patent with the U.S. Patent Office five years ago.

c.An internally developed trademark registered with the federal government for $25,000 on November 1, 2013. Management decided to capitalize the $25,000 as an intangible asset with an indefinite life.

Required:1.Compute the acquisition cost of each intangible asset.

2.Compute the amortization of each intangible at December 31, 2013. The company does not use contra-accounts. (Assume the company uses straight-line method.)

3.Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2013.