Questions #28-29 are based on the information below: On January 1, 2021, The Donut Stop purchased a patent for $80,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only five more years. 28. The entry to record the 2021 amortization expense for the patent should include: A. Debit Patents for $16,000 B. Debit Amortization Expense for $16,000 C. Debit Amortization Expense for $4,000 D. Debit Patents for $4,000 29. What should be recorded on the balance sheet for Patents at December 31, 2022? A. $80,000 B. $64,000 C. $72,000 D. $48,000

Questions #28-29 are based on the information below: On January 1, 2021, The Donut Stop purchased a patent for $80,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only five more years. 28. The entry to record the 2021 amortization expense for the patent should include: A. Debit Patents for $16,000 B. Debit Amortization Expense for $16,000 C. Debit Amortization Expense for $4,000 D. Debit Patents for $4,000 29. What should be recorded on the balance sheet for Patents at December 31, 2022? A. $80,000 B. $64,000 C. $72,000 D. $48,000

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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