What is a patent and how is it accounted for?
Answer to relevant QuestionsWhat types of costs related to long-term operational assets are capitalized and what types are expensed?Wrecker Specialist Corporation purchased three new pieces of equipment at a total cost of $415,000. The appraised values of the individual pieces of equipment were as follows:Equipment 1 ...... $162,750Equipment 2 ...Unique Quality Recourses purchased a patent for $150,000 on July 1, 2009. The estimated useful life is 20 years. The legal life is 15 years. What is the amortization expense for the fiscal year ended June 30, 2010?Calculate the annual straight-line depreciation expense for an asset that cost $45,000, has a useful life of eight years, and has an estimated salvage value of $5,000.Similar Motors has determined that several of its plants are impaired. The book value of the plants is $8.34 billion, but the fair market value of the plants is just $7.56 billion. How would Similar Motors record this ...
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