Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $376,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $19,000. If required, round your answer to the nearest dollar. a. Determine the patent amortization expense for the Year 4 ended December 31. $fill in the blank 78628a016fd203e_1 b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank.

Sagot :

Answer:

Following are the responses to the given question:

Explanation:

For point a:

patent cost[tex]=376000[/tex]  

Start dividing by the useful life =8  

Amortization per year[tex]=47000[/tex]  

Amortization for 3 years=[tex]47000\times 3=141000[/tex]

3 Year end-of-year book value=[tex]376000-141000=235000[/tex]

The cost of a lawsuit has been added[tex]=19000[/tex]  

Year 4's book value[tex]=254000[/tex]  

Multiply by the useful life[tex]=5[/tex]

Year 4 patent amortization cost[tex]=50800[/tex]  

For point b:  

Amortization expense 50800  

         Patent                            50800

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.