Use the information in BE12-13 and assume that in January 2016, Latupatula spends $26,000 successfully defending a

Question:

Use the information in BE12-13 and assume that in January 2016, Latupatula spends $26,000 successfully defending a patent suit. In addition, Latupatula now feels the patent will be useful only for another seven years. Prepare the journal entries to record the 2016 expenditure and amortization.
In exercise
Latupatula purchased a patent from MaFee Corp. on January 1, 2014, for $87,000. The patent had a remaining legal life of 16 years. Prepare Latupatula's journal entries to record the 2014 patent purchase and amortization.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...