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The fair value of a patent on 01/01/2020 was RO. 5200. The patent was purchased on 01/01/2015 for RO.10,000 with an estimated useful life of 10 years with no salvage value. If the company follows straight-line amortization methods on all its intangible assets, how much amount to be charged to asset account (Patent account) a.A credit of RO. 5000 b.A debit of RO. 200 c.A debit of RO. 5000 d.A credit of RO. 200

The fair value of a patent on 01/01/2020 was RO. 5200. The patent was purchased on 01/01/2015 for RO.10,000 with an estimated useful life of 10 years with no salvage value. If the company follows straight-line amortization methods on all its intangible assets, how much amount to be charged to asset account (Patent account) a.A credit of RO. 5000 b.A debit of RO. 200 c.A debit of RO. 5000 d.A credit of RO. 200

FINANCIAL ACCOUNTING
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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The fair value of a patent on 01/01/2020 was RO. 5200. The patent was purchased on 01/01/2015 for RO.10,000 with an estimated useful life of 10 years with no salvage value. If the company follows straight-line amortization methods on all its intangible assets, how much amount to be charged to asset account (Patent account)
a.A credit of RO. 5000
b.A debit of RO. 200
c.A debit of RO. 5000
d.A credit of RO. 200

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