Below are three independent situations that occurred for Bartek Corporation during 2015. Bartek’s year-end is December 31, 2015.

i. On January 1, 2012, Bartek purchased a patent from Apex Co. for $800,000. The patent expires on the same date in 2020 and Bartek has been amortizing the patent over the eight years. During 2015, management reviewed the patent and determined that its economic benefits will last seven years from the date it was acquired.

ii. On January 1, 2015, Bartek bought a perpetual franchise from Amoot Inc. for $500,000. On this date, the carrying value of the franchise on Amoot’s accounts was $600,000. Assume that Bartek can only provide evidence of clearly identifiable cash flows for twenty years but estimates that the franchise could provide economic benefits for up to sixty years.

iii. On January 1, 2012, Bartek incurred development costs of $250,000. These costs meet the six criteria, and Bartek is amortizing these costs over five years.

Required:

a. For situation (i), how would the patent be reported on the SFP/BS as at December 31, 2015?

b. For situation (ii), what would be the amortization expense for December 31, 2015?

c. For situation (iii), how would these development costs be reported as at December 31, 2015?