Venture Company acquired patent rights on January 3, 2005, for $661,500. The patent has a useful life

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Venture Company acquired patent rights on January 3, 2005, for $661,500. The patent has a useful life equal to its legal life of 15 years. On January 5, 2008, Venture successfully defended the patent in a lawsuit at a cost of $105,000.
a. Determine the patent amortization expense for the current year ended December 31, 2008.
b. Journalize the adjusting entry to recognize the amortization.

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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