Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2014, for $60,000. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 12 years. Prepare Celine Dion's journal entries to record the purchase of the patent and 2014 amortization.

Use the information provided above. Assume that at January 1,2016 the carrying amount of the patent on Celine Dion’s books s $43,200. In January, Celine Dion spends $24,000 successfully defending a patent suit. Celine Dion still feels the patent will be useful until the end of 2023. Prepare the journal entries to record the $24,000 expenditure and 2016 amortization.

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Date Account Titles and Explanation Debit Credit 2014 Jan 1 Patent 6000... View the full answer