A company purchased a patent on January 1, 2018, for $2,500,000. The patent's legal life is 20
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A company purchased a patent on January 1, 2018, for $2,500,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2018, the company paid legal costs of $135,000 in successfully defending the patent in an infringement suit.
Prepare the journal entry to amortize the patent at year end on December 31, 2018.
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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