On 31 December, year 2, Anchor product has a patent shown on its balance sheet for $96,000 that has a remaining legal life of 8 years. It is expected that, the patent will have no economic value after 6 years. At the beginning of year 3, the company incur a cost of $50,000 which will extend the economic value of the patent for another 5 years, What is the amount for patent amortization expense for anchor product for year 3.

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The patent amortization expense for year 3 is 22000 The calculation is as follows Remai... View the full answer