Bren Company purchased a patent for USD 36,000. The patent is expected to have a finite life of 10 years even though its legal life is 17 years. The amortization for the first year is: a. USD 36,000. b. USD 3,600. c. USD 2,118. d. USD 3,240. e. None of the above.
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- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.CP, Inc.. purchases a patent on January 1, 20X1, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming CP. uses the straight-line method, what is the carrying value of the patent on December 31, 20X2?On January 1, 20X3, Enid Corporation purchased a patent from another company for $190,000. The estimated useful life of the patent is 10 years, and its remaining legal life is 15 years. The amortization expense for 20X3 is: Question 5 options: $12,667. $85,000. $68,000. $19,000.
- On January 1, Year 1, Stiller Company paid $192,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively? Multiple Choice O $24,000 and $72,000 $24,000 and $120.000 $38,400 and $76,800 $38,400 and $115,200Ivanhoe Company incurred research and development costs of $ 90000 and legal fees of $ 30000 to develop a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Ivanhoe record as Patent Amortization Expense in the first year? O $0. O $ 3000. O $ 6000. O $ 12000.On January 1, 20X3, Enid Corporation purchased a patent from another company for $190,000. The estimated useful life of the patent is 10 years, and its remaining legal life is 15 years. The amortization expense for 20X3 is: $12,667. $85,000. $68,000. $19,000.
- On March 1, 2020, Tebow Company purchased a patent for $158,000 cash. Although the patent gives legal protection for 19 years, the patent will be used for only 2 years. Assume straight-line amortization. Amortization per unit (Cost Res. Value)/Time = Amortization per year Amortization per year X portion of year = Amortization Journalize a) the purchase of the patent, and b) the amortization expense of the patent as of December 31, 2020. Date a b Check All Parts Description Debit CreditDrexler incurred P234,000 of experimental and development costs in its laboratory to develop a patentwhich was granted on January 2, 20x4. Legal fees and other costs associated with registration of thepatent totaled P49,200. Management estimates that the useful life of the patent will be eight (8) years. 7. What is the carrying amount of the patent on December 31, 20x4?Ramsay Enterprises incurred research and development costs of $450,000 and legal fees of $18,000 to acquire a patent. The patent has a legal life of 15 years and a useful life of 9 years. What amount should Ramsay record as Patent Amortization Expense in the first year? O $52,000 O $31,200 O $1,200 O $2,000
- Gemini Group has acquired a patent for $22.000. Its useful life is expected to be ten years. What amount would be recorded in a periodic amortization journal entry? Amortization Expense-Patents Patents 2,200 2,200 Amortization Expense-Patents 2,000 Patents 20,000 Amortization Expense-Patents 22,000 Patents 22,000 1,200 Amortization Expense-Patents 1,200 Patents Submit AnswerThompson Company incurred research and development costs of $120,000 and legal fees of $50,000 to develop a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Thompson record as Patent Amortization Expense in the first year? O a. $5,000. O b. $8,000. O c. $17,000. O d. $6,000.Given the correct answer accounting