Hart Inc. purchased a patent in January of Year 1 for $60,000 and chose to amortize the

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Question:

Hart Inc. purchased a patent in January of Year 1 for $60,000 and chose to amortize the patent over its useful life of 20 years. However, in Year 6, the company decided that the total useful life of the patent would only be 10 years based on new technology advances in the company's internal research and development department.

a. What is the carrying value of the patent on January 1 of Year 6? Carrying value on January 1 of Year 6?

b. What entry would the company record for amortization of the patent in Year 6?

Note: If a journal entry isn't required on any of the dates shown, select "N/Adebit" and "N/Acredit" as the account names and leave the Dr. and Cr. answers blank (zero).