Keen Company acquired catons ights Year 4 Kleen successtuly

Keen Company acquired catons ights Year 4, Kleen successtuly defended the petent in a lnwsut at a ccst of $39,600. on January 10 of Yoar 1 for $882,000. The patont has a usetut lit oqual to ts legal lite of eight years. On January 7 of a Determ¡?? the patent amontato, expense tr ??.r4e0ed December 31. b. Joumalize the adjusting entry on December 31 of Year 4 to recognize the amortization Rotor to the Chart of Accounts for exact wording of account teles Check My Work Previcus Next 6 8 9 0

Solution

(a) 882000/8 years = 110250

    39600/5 years =7920

110250 + 7920 = 118170

(b) Amortization Expense - Patent 118170

                      Amortization patent rights                  118170