E8-20 (Algo) Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets LO8-6 Trotman Company had three intangible assets at the end of the current year: a. Computer software and website development technology purchased on January 1 of the prior year for $81,000. The technology is expected to have a four-year useful life to the company with no residual value. b. A patent purchased from lan Zimmer on January 1 of the current year for a cash cost of $33,000. Zimmer had registered the patent with the U.S. Patent and Trademark Office five years ago. Trotman intends to use the patent for its remaining life. c. A trademark purchased for $30,000 on November 1 of the current year. Management decided the trademark has an indefinite life. Required: 1. Compute the amortization of each intangible at December 31 of the current year. The company does not use contra-accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the income statement for the current year. 2b. Show how the three intangible assets should be reported on the balance sheet for the current year. Complete this question by entering your answers in the tabs below

E8-20 (Algo) Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets LO8-6 Trotman Company had three intangible assets at the end of the current year: a. Computer software and website development technology purchased on January 1 of the prior year for $81,000. The technology is expected to have a four-year useful life to the company with no residual value. b. A patent purchased from lan Zimmer on January 1 of the current year for a cash cost of $33,000. Zimmer had registered the patent with the U.S. Patent and Trademark Office five years ago. Trotman intends to use the patent for its remaining life. c. A trademark purchased for $30,000 on November 1 of the current year. Management decided the trademark has an indefinite life. Required: 1. Compute the amortization of each intangible at December 31 of the current year. The company does not use contra-accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the income statement for the current year. 2b. Show how the three intangible assets should be reported on the balance sheet for the current year. Complete this question by entering your answers in the tabs below

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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