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Trotman Company nad theee intangible assets at the end of 2016 (end of the accounting year a Computer sotware and web develop
3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2016 TROTM
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Answer #1
1.Compute the acquisition cost of each intangible asset
Technology $77,000.00
Patent $9,000.00
Trademark $26,000.00
2. Compute the amortization of each intangible at December 31, 2016.
Technology    (77000/4) $19,250.00
Patent (9000/15) (legal life is 20 year 5 year already elapsed) $600.00
Trademark (indefinite life) $0.00
3. Income statement for 2016: Partial
Operating Expense (19250+600) $19,850.00
4. Balance sheet at December 31, 2016:
Intangibles:
Technology (77000-19250*2) $38,500.00
Patent =12000-800*2 $10,400.00
Trademark $26,000.00
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