Exam Starting question Chart of Journal Smith Company nquired otens rights on Ja

Question

Exam Starting question Chart of Journal Smith Company nquired otens rights on January 6,2013, for $887 400. The patent has a usetul lte oquasl to its lngal it of nine years. On January 3, 2016, Smith succesasfully detended the patent in a lawsuit at a cost off $42,000 Required A Determine the patent amotization expense for the year ended December 31, 2014 the adjuaing entry to reognize the amortiration Reter to the Chart of Accounts for xcr wording of accoune s OURNAL Adpsting Entries s mone Check My Work uses remaining maining: 1 25.5

Explanation / Answer

Amortization for 3 years = 887400/9*3= $295800 Book value on Jan 1,2016 = 887400-295800= $591600 A Patent amortization expense for year ended Dec 31,2016 = (591600+42000)/6= $105600 B Amortization expense 105600       Patents 105600

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.