Surkis Corporation purchased a patent for $180,000 cash on April 2, 2015. Its legal life is 20 years and its
Surkis Corporation purchased a patent for $180,000 cash on April 2, 2015. Its legal life is 20 years and its estimated useful life is 5 years. The company's year-end is December 31 and it prepares adjusting entries annually.
(a) Prepare the journal entry to record the
(1) Purchase of the patent on April 2, 2015,
(2) Amortization for the first year ended December 31, 2015.
(b) Show how the patent would be reported on the statement of financial position at December 31.Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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