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Surkis Corporation purchased a patent for $180,000 cash on April 2, 2015. Its legal life is 20 years and its

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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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Financial Accounting Tools for Business Decision Making

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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Question Details
Chapter # 9
Section: Brief Exercises
Problem: 12
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Question Posted: January 11, 2017 10:17:58
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