MG Corporation acquired a patent for a new product for $260,000 on 2 January 2013 with a useful life of 12 years. Based on exception market conditions, the patent was estimated to have a useful life of only 8 years. During 2019 the product was determined worthless and to be removed from industry. Required: Write the journal entries to record the patent and amortization charges for 2013? Based on the information given, record the amortization charges for 2019 assuming amortization is recorded at the end of each year?

MG Corporation acquired a patent for a new product for $260,000 on 2 January 2013 with a useful life of 12 years. Based on exception market conditions, the patent was estimated to have a useful life of only 8 years. During 2019 the product was determined worthless and to be removed from industry. Required: Write the journal entries to record the patent and amortization charges for 2013? Based on the information given, record the amortization charges for 2019 assuming amortization is recorded at the end of each year?

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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