Reference no: EM132721855

Whiteway company has a December 31 fiscal year end. selected information follows for Whiteway company for two independent situations as at december 31, 2021.

1. Whiteway purchased a patent from Hopins Inc. for $40000 on january 1, 2018. the patent expires on january 1, 2026. Whiteway has been amortizing it over its legal life. During 2021, Whiteway determined that the patents economic benefits would not last longer than six year from the date of acquisition.
2. Whiteway has a trademark that had been purchased in 2014 for $250000. during 2020, the company spent $50000 on a lawsuit that successfully defended the trademark. on december 31, 2021, it was assessed for impairment and the recoverable amount was determined to be $275000.

Instruction

Problem a) for each of these assets, determine the amount that will be reported on Whiteway's december31, 2020 and 2021, balance sheets.

Problem b) for each of these assets, determine what, if anything, will be recorded on Whiteway's 2021 income statement. be specific about the account name and the amount.