Kleen Company acquired patent rights on January $10$ of Year $1$ for $$940,500.$ The patent has a useful life equal to its legal life of $8$ years. On January $7$ of Year $4,$ Kleen successfully defended the patent in a lawsuit at a cost of $$40,200.$

 

 

Required:

a$.$ Determine the patent amortization expense for Year $4$ ended December $31.$

b$.$ Journalize the adjusting entry on December $31$ of Year $4$ to recognize the amortization.

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Answer Lets break down the requirements step by step a To determine the patent amortization expense ... View the full answer