Given Below Are Costs Incurred by Bunker Company During 2017 $31,2018$

Essay

Given below are costs incurred by Bunker Company during 2017 and 2018.Bunker follows the policy of decreasing the Intangible Asset account directly as amortized.
Research was conducted to discover a new product and costs of $200,000 in 2017 and $80,000 in 2018 were incurred.After several months,a product was created and a patent secured for a cost of $150,000,effective as of July 1,2018.The company expects to have increased revenues of $500,000 over the next several years.The patent is expected to be useful for the next ten years.
A. Prepare a partial income statement for the year ended December $31,2018$ .

B. How should the $\$ 80,000$ cost incurred in 2018 be reported on the financial statements?