Bluestone Company had three intangible assets at the end of 2014 (end of the accounting year):
a. A patent purchased from Miller Co. on January 1, 2014, for a cash cost of $9,300. When purchased, the patent had an estimated life of fifteen years.
b. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life.
c. Computer licensing rights were purchased on January 1, 2014 for $60,000. The rights are expected to have a five-year useful life to the company.
Required:
1. Compute the acquisition cost of each of the intangible asset.
2. Compute the amortization of each intangible for the year ended December 31, 2014.
3. Show how the assets and any related expenses should be reported on the balance sheet and income statement for 2014.