1. Morris Printers purchased for $900,000 a patent for a new laser printer. Although the patent gives...

Question:

1. Morris Printers purchased for $900,000 a patent for a new laser printer. Although the patent gives legal protection for 20 years, it is expected to provide Morris Printers with a competitive advantage for only 10 years. Assuming the straight-line method of amortization, make journal entries to record
(a) The purchase of the patent
(b) Amortization for year 1.
2. After using the patent for five years, Morris Printers learns at a industry trade show that Super Printers is designing a more-efficient printer. On the basis of this new information, Morris Printers determines that the patents total useful life is only seven years. Record amortization for year 6.