On January 2, 2024, David Corporation purchased a patent for $500,000. The remaining legal life is 12
Question:
On January 2, 2024, David Corporation purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2026, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life.
Required:
Prepare journal entries related to the patent for 2024, 2025, and 2026.
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To record the purchase of the patent January 2 2024 Patent 500000 Cash 500000 To record amortization ...View the full answer
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