Indigo Corporation purchases a patent from Sandhill Company on January 1, 2017, for $54,000. The patent has
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Question:
Indigo Corporation purchases a patent from Sandhill Company on January 1, 2017, for $54,000.
The patent has a remaining legal life of 12 years.
Indigo feels the patent will be useful for 10 years.
Prepare Indigo's journal entries to record the purchase of the patent and 2017 amortization.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
(To record purchase of patents) | ||
(To record amortization of patents) |
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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