In January of Year 1, Ford Co. purchased a patent from a research institution for $325,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co defended the patent in legal proceedings and successfully retained rights of ownership of the patent. The estimated life of the patent did not change from its original estimate. Legal expenses on December 31 were $26,000. Determine the (1) amortization for Year 2, and (2) carrying value of the patent on December 31 of Year 2 Note: Round your final answers to the nearest dollar. 1. Amortization for Year 2" 1 2. Carrying value on Dec 31, Year 25 25.214 302.572 x

In January of Year 1, Ford Co. purchased a patent from a research institution for $325,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co defended the patent in legal proceedings and successfully retained rights of ownership of the patent. The estimated life of the patent did not change from its original estimate. Legal expenses on December 31 were $26,000. Determine the (1) amortization for Year 2, and (2) carrying value of the patent on December 31 of Year 2 Note: Round your final answers to the nearest dollar. 1. Amortization for Year 2" 1 2. Carrying value on Dec 31, Year 25 25.214 302.572 x

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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