Micro Facilities incurs the following costs during the year.

• A new patent is purchased for $602,000 from Techno Company. The patent gives Micro exclusive right to sell specialized data storage units.
• Internal costs of $502,000 were used to research and develop a new high-resolution monitor. The company expects production to begin next year, and sales to customers to occur over the next five years.
• An integrated sound component for video capture processes is developed using internal resources at a cost of $452,000. By the end of the year, the company applies for and receives a patent on the sound component.
• Advertising costs of $252,000 were used in the current year to promote the company’s products and services, including those expected to be released next year.

• Required:

  Record the expenditures. Assume all expenditures were paid in cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer rating: 100% (QA)

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