Pina Colada Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $85,950. The patent had a remaining legal life of 15 years. In January 2025, Pina Colada spends $27,920 successfully defending a patent suit. In addition, Pina Colada now feels the patent will be useful only for another seven years. Prepare the journal entries to record the 2025 expenditure and amortization for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries.)

Pina Colada Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $85,950. The patent had a remaining legal life of 15 years. In January 2025, Pina Colada spends $27,920 successfully defending a patent suit. In addition, Pina Colada now feels the patent will be useful only for another seven years. Prepare the journal entries to record the 2025 expenditure and amortization for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries.)

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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