Question 2

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A patent was acquired by Sunland Corporation on January 1, 2017, at a cost of $87,200. The useful life of the patent was estimated to be 10 years. At the beginning of 2020, Sunland spent $18,200 in successfully defending an infringement of the patent. At the beginning of 2021, Sunland purchased a patent for $26,880 that was expected to prolong the life of its original patent for 5 additional years.

Calculate the amortization expense for 2017.

Amortization Expense

$

Calculate the balance in the Patent account at the beginning of 2020, immediately after the infringement suit.

Balance in the Patent account

$

Calculate the amortization expense for 2020.

Amortization expense

$

Calculate the balance in the Patent account at the beginning of 2021, after purchase of the additional patent.

Balance in the Patent account

$

Calculate the amortization expense for 2021.

Amortization expense