Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2014, when it was acquired at a cost of $9 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2018.
Required:
Prepare the year-end journal entry for patent amortization in 2018. No amortization was recorded during the year. Saint John Corporation prepares its financial statements according to IFRS. On June 30, 2018, the company purchased