E$8-20($Algo$)$ Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets LO$8-6$

Trotman Company had three intangible assets at the end of the current year:

Computer software and website development technology purchased on January $1$ of the prior year for $$74,000.$ The technology is expected to have a four$-$year useful life to the company with no residual value.

A patent purchased from Ian Zimmer on January $1$ of the current year for a cash cost of $$12,000.$ 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.

A trademark purchased for $$24,000$ 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.

$2$a$.$ Show how the expenses related to the three intangible assets should be reported on the income statement for the current year.

$2$b$.$ Show how the three intangible assets should be reported on the balance sheet for the current year.