Oriole Corporation purchases a patent from Pharoah Company on January 1, 2020, for $73,920. The patent has a remaining legal of 16 years. Oriole feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Oriole's books is $59,136. In January, Oriole spends $17,600 successfully defending a patent suit. Oriole still feels the patent will be useful until the end of 2029. Prepare Oriole's journal entries to record the amortization for 2020 and 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 2022

Oriole Corporation purchases a patent from Pharoah Company on January 1, 2020, for $73,920. The patent has a remaining legal of 16 years. Oriole feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Oriole's books is $59,136. In January, Oriole spends $17,600 successfully defending a patent suit. Oriole still feels the patent will be useful until the end of 2029. Prepare Oriole's journal entries to record the amortization for 2020 and 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 2022

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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