In 2020, Madden Inc. purchased a number of intangible assets from a competitor who was in bankruptcy.

Madden acquired the following assets:

Asset                                    Purchase Cost

Trademark ...........................    $150,000

Customer list .......................      220,000

Patent ..................................      360,000

The following information is also available:

• The trademark is renewable every 15 years in perpetuity, and Madden’s management believe that the trademark will continue to have recognized value for many decades.
• The customer lists are expected to be useful for the next five years.
• The patent has a remaining legal life of 15 years, but Madden’s management expect that technological changes will render it worthless after about six years.

Required

a. Calculate the annual amortization expense, if any, that should be recorded for each of these intangible assets, assuming the straight-line method is appropriate.

b. Show how the intangible assets section of the statement of financial position would be presented four years after acquisition of these assets, assuming that there has been no evidence that their values have been impaired. Assume that a full year of amortization was taken in the year of acquisition.