CengageNOWv21 Online teach Cengage Learning X Cengage Leam

? CengageNOWv21 Online teach × Cengage Learning X Cengage Leaming ?? https://v2.cengagenow.com/ilrn/takeAssignment/tako AssignmentMan Students, register for ...Writing a Position Paper Show Me How Amortization Entries Kleen Company acquired patent rights on Janu ary 10 of Year 1 for $464,000. The pater, has·useful w.-alto ita legal ife of eight years.On January 7 of Year 4, en sucmsfuly defended the patent in a lavsuit at a cost of $23.000. If required, round your answer to the nearest dollar a Determine the patent amortization expense for the Year d ended December 31 htm set an For intangible assets with finite lives, a company uses the straghthne method to calcolate \"mortirasan. ?·company sucesate, de-nd\".pstete betre, pndhei.of the patent. If the company loses a lavauit regarding a patent infringementhen the pte Learning Objective 3 b. Journalize the adjusting entry on December 33 of Year to recegnze the a Patent asset accot tion and depletion, the reconding ef s to record depreciation Unlike the entries 40 PME

Solution

(a) Patent ammortisation exp =

464000/8years = 58000

Lawsuit cost of yr 4 = 23000/5years = 4600

Ammortisation exp = 58000 + 4600 = 62600

(b) Adjusting entry

Accumulated Exp-Patent   62600

                       Patents                      62600