InnoTech Applications paid $1,300,000 in research costs for a new software program. InnoTech also paid $1,000,000 to

Question:

InnoTech Applications paid $1,300,000 in research costs for a new software program. InnoTech also paid $1,000,000 to acquire a patent on other software. After readying the software for production, InnoTech's sales revenue for the first year totaled $3,400,000. Cost of goods sold was $400,000, and selling expenses were $800,000. All of these transactions occurred during 2017. InnoTech expects the patent to have a useful life of five years. Prepare InnoTech Applications' single-step income statement for the year ended December 31, 2017, complete with a heading.