### Weaver Corporation Patent Purchase and Amortization**Scenario:**On January 1, 2024, Weaver Corporation purchased a patent for $264,000. The remaining legal life of the patent is 20 years, but the company estimates it will be useful for only six more years. In January 2026, the company incurred legal fees of $84,000 in successfully defending a patent infringement suit. This successful defense did not change the company's estimated useful life of the patent. Weaver Corporation's fiscal year ends on December 31. **Requirements:**1. **Record the Purchase and Amortization:** - **2024:** Record the purchase and amortization. - **2025:** Record the amortization. - **2026:** Record the legal fees and amortization.2. **Determine the Balance:** - **At the end of 2026:** Calculate the balance in the Patent account.**Steps to Complete:**- To complete the calculations, enter the data in the required fields and tabs provided in your accounting software or worksheet.1. **Required 1:** - Record the purchase made in 2024 and the related amortization expenses for 2024. - Record the amortization expenses for 2025. - For 2026, record both the legal fees and the amortization expenses.2. **Required 2:** - Calculate the balance in the Patent account at the end of 2026.**Example Calculation:**1. **Purchase and Amortization:** - 2024 Purchase = $264,000 - Amortization (Annual) = $264,000 / 6 years = $44,000 per year - 2024 Amortization: $44,000 - 2025 Amortization: $44,0002. **Legal Fees and Amortization in 2026:** - Legal Fees = $84,000 (added to the Patent account) - New Patent Value = $264,000 + $84,000 = $348,000 - Remaining useful life as of 2026 = 6 - 2 (years 2024 and 2025) = 4 years - New Amortization (Annual) = $348,000 / 4 years = $87,000 - 2026 Amortization

Amortization expenses to be charged on Intangible assets over it's useful life of an asset. This is…

2024, Weaver Corporation purchased a patent for $264,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $84,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: 1. Record the

2024, Weaver Corporation purchased a patent for $264,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $84,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: 1. Record the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2023, the company incurred legal fees of $51,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Weaver Corporation’s year-end is December 31. 2. What is the balance in the Patent account at the end of 2023?
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Please show calculations, thank you.
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