xyMch!!Test × RegistrationDetats mte ANew Tab Search C eztomheducation com/hm tp

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xyMch!!Test × RegistrationDetats mte ANew Tab Search C eztomheducation com/hm tpx 0.00 polnts Exercise 11-17 Change In estimate; useful life of patent /LO11-4, 11-5] Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2012, when it was acquired at a cost of $15.3 million at the beginning of that the patent would benefit the company over a total of six years rather than the nine-year life being used to year Due to rapid technological advances in the industry, management decided that amortize its cost. The decision was made at the end of 2016 (before adjusting and closing entries) Prepare the appropriate adjusting entry for patent amortization in 2016 to reflect the revised estimate ( no entry is required for a transactionlevent, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5% hew transaction list Journal entry worksheet Record amortization expense. expense. Note: Enter debits before tredits. Debit Credit TOSHIBA esc 2 4

Explanation / Answer

Patent value to be amortized 15300000 Useful life of patent 9 Amortization of patent per year 1700000 Number of year amortization till 2015 4 Accumulated amortization 6800000 Patent value to be amortized 15300000 Accumulated amortization 6800000 Book value of patent at end of 2015 8500000 Useful life left (6 years - 4 years ) 2 Amortization expense 4250000 (8500000/2) 31-Dec-16 Amortization expense 4250000                   Accumulated amortization 4250000

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