Surkis Corporation purchased a patent for $180,000 cash on April 2, 2012. Its legal life is 20

Question:

Surkis Corporation purchased a patent for $180,000 cash on April 2, 2012. Its legal life is 20 years and its estimated useful life is 10 years.

(a) Prepare the journal entry to record the

(1) Purchase of the patent on January 2, 2012,

(2) Amortization for the first year ended December 31, 2012.

(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...