Question: On January 2 2013 David Corporation purchased a patent for

On January 2, 2013, David Corporation purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2015, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life.

Prepare journal entries related to the patent for 2013, 2014, and 2015.

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  • CreatedDecember 23, 2013
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