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Trotman Company had three intangible assets at the end of 2012 (end of the accounting year): a. Computer software and Web development technology purchased on

Trotman Company had three intangible assets at the end of 2012 (end of the accounting year):

a.

Computer software and Web development technology purchased on January 1, 2011, for $88,000. The technology is expected to have a four-year useful life to the company.

b.

A patent purchased from Ian Zimmer on January 1, 2011, for a cash cost of $39,000. 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 $18,000 on November 1, 2012. Management decided to capitalize the $18,000 as an intangible asset with an indefinite life.

Required:
1. Compute the acquisition cost of each intangible asset.(Omit the "$" sign in your response.)

Acquisition cost
Technology $
Patent
Trademark

2.

Compute the amortization of each intangible at December 31, 2012. The company does not use contra-accounts. Assume the company uses straight-line method.(Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Amortization
Technology $
Patent
Trademark

3.

Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2012.(Omit the "$" sign in your response.)

Income statement for 2012:
Operating expenses:
(Click to select)Amortization expenseTechnologyDepreciation expensePatentAccumulated depreciation $

Balance sheet at December 31, 2012:
(under noncurrent assets)
Intangibles:
(Click to select)Accumulated depreciationPatentTechnologyTrademarkInventories $
(Click to select)TrademarkInventoriesPatentTechnologyAccumulated depreciation
(Click to select)PatentAccumulated depreciationTrademarkTechnologyInventories
$

rev: 11_21_2013_QC_38170

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