Whiteway Company has a December 31 fiscal year end. Selected information follows for Whiteway Company for two independent situations as at December 31, 2017:

1. Whiteway purchased a patent from Hopkins Inc. for $400,000 on January 1, 2014. The patent expires on January 1, 2022. Whiteway has been amortizing it over its legal life. During 2017, Whiteway determined that the patent's economic benefits would not last longer than six years from the date of acquisition.

2. Whiteway has a trademark that had been purchased in 2010 for $250,000. During 2016, the company spent $50,000 on a lawsuit that successfully defended the trademark. On December 31, 2017, it was assessed for impairment and the recoverable amount was determined to be $275,000.

Instructions

(a) For each of these assets, determine the amount that will be reported on Whiteway's December 31, 2016 and 2017, balance sheets.

(b) For each of these assets, determine what, if anything, will be recorded on Whiteway's 2017 income statement. Be specific about the account name and the amount