In January 2025, the company successfully defended the patent in litigation at a cost of $12,770....

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In January 2025, the company successfully defended the patent in litigation at a cost of $12,770. The victory extended the patent's life to December 31, 2033. What is the proper way to account for this cost? Also, record patent amortization for a full year in 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation (To record legal cost of successfully defending patent) (To record one year's amortization expense) Debit Credit Question 3 of 5 < 0.5/1 E In 2023, Wildhorse Corp. spent $413,600 on a research project, but by the end of 2023 it was impossible to determine whether any benefit would come from it. Wildhorse prepares financial statements in accordance with IFRS. (b) Your answer is correct. The research project is completed in 2024, and a successful patent is obtained. The research phase costs to complete the project are $81,000. The administrative and legal expenses incurred in obtaining patent number 481-761-0092 on January 3, 2024, total $15,200. The patent has an expected useful life of five years. The company will now begin investigating applications that use or apply the knowledge obtained on this project. Record these costs in journal entry form. Also, record patent amortization for a full year in 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Research and Development Expense Cash Debit 81000 Credit 81000 In January 2025, the company successfully defended the patent in litigation at a cost of $12,770. The victory extended the patent's life to December 31, 2033. What is the proper way to account for this cost? Also, record patent amortization for a full year in 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation (To record legal cost of successfully defending patent) (To record one year's amortization expense) Debit Credit Question 3 of 5 < 0.5/1 E In 2023, Wildhorse Corp. spent $413,600 on a research project, but by the end of 2023 it was impossible to determine whether any benefit would come from it. Wildhorse prepares financial statements in accordance with IFRS. (b) Your answer is correct. The research project is completed in 2024, and a successful patent is obtained. The research phase costs to complete the project are $81,000. The administrative and legal expenses incurred in obtaining patent number 481-761-0092 on January 3, 2024, total $15,200. The patent has an expected useful life of five years. The company will now begin investigating applications that use or apply the knowledge obtained on this project. Record these costs in journal entry form. Also, record patent amortization for a full year in 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Research and Development Expense Cash Debit 81000 Credit 81000