Mystic Pizza Company purchased a patent from Prime Pizza Plus on January 1, Year 1 for $72,000.

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Mystic Pizza Company purchased a patent from Prime Pizza Plus on January 1, Year 1 for $72,000. The patent has a remaining legal life of nine years. Prepare the journal entries to record the acquisition and the amortization for the first year, assuming Mystic Pizza Company amortizes its patents using the straight-line method over the life of the asset.

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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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