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← Week 1: Homework Question 3 of 4 < > 8.75/10 The project is completed in 2025, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2025 total $16,000. The patent has an expected useful life of 5 years. Record the costs for 2025 in journal entry form. Also, record patent amortization (full year) in 2025. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Research and Development Expense Cash (To record research and development costs) Patents Cash (To record legal and administrative costs) Amortization Expense Patents (To record one year's amortization expense) Debit 113000 16000 3200 Credit 113000 16000 3200 ← Week 1: Homework Question 3 of 4 < > (c) Your answer is partially correct. 8.75/10 = In 2026, the company successfully defends the patent in extended litigation at a cost of $44,800, thereby extending the patent life to December 31, 2033. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2026. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Patents Cash (To record legal cost of successfully defending patent) Amortization Expense Patents (To record one year's amortization) Debit 44800 8960 Credit 44800 8960

← Week 1: Homework Question 3 of 4 < > 8.75/10 The project is completed in 2025, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2025 total $16,000. The patent has an expected useful life of 5 years. Record the costs for 2025 in journal entry form. Also, record patent amortization (full year) in 2025. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Research and Development Expense Cash (To record research and development costs) Patents Cash (To record legal and administrative costs) Amortization Expense Patents (To record one year's amortization expense) Debit 113000 16000 3200 Credit 113000 16000 3200 ← Week 1: Homework Question 3 of 4 < > (c) Your answer is partially correct. 8.75/10 = In 2026, the company successfully defends the patent in extended litigation at a cost of $44,800, thereby extending the patent life to December 31, 2033. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2026. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Patents Cash (To record legal cost of successfully defending patent) Amortization Expense Patents (To record one year's amortization) Debit 44800 8960 Credit 44800 8960

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 7MC
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← Week 1: Homework Question 3 of 4 < > 8.75/10 The project is completed in 2025, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2025 total $16,000. The patent has an expected useful life of 5 years. Record the costs for 2025 in journal entry form. Also, record patent amortization (full year) in 2025. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Research and Development Expense Cash (To record research and development costs) Patents Cash (To record legal and administrative costs) Amortization Expense Patents (To record one year's amortization expense) Debit 113000 16000 3200 Credit 113000 16000 3200
Transcribed Image Text:← Week 1: Homework Question 3 of 4 < > 8.75/10 The project is completed in 2025, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2025 total $16,000. The patent has an expected useful life of 5 years. Record the costs for 2025 in journal entry form. Also, record patent amortization (full year) in 2025. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Research and Development Expense Cash (To record research and development costs) Patents Cash (To record legal and administrative costs) Amortization Expense Patents (To record one year's amortization expense) Debit 113000 16000 3200 Credit 113000 16000 3200
← Week 1: Homework Question 3 of 4 < > (c) Your answer is partially correct. 8.75/10 = In 2026, the company successfully defends the patent in extended litigation at a cost of $44,800, thereby extending the patent life to December 31, 2033. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2026. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Patents Cash (To record legal cost of successfully defending patent) Amortization Expense Patents (To record one year's amortization) Debit 44800 8960 Credit 44800 8960
Transcribed Image Text:← Week 1: Homework Question 3 of 4 < > (c) Your answer is partially correct. 8.75/10 = In 2026, the company successfully defends the patent in extended litigation at a cost of $44,800, thereby extending the patent life to December 31, 2033. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2026. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation Patents Cash (To record legal cost of successfully defending patent) Amortization Expense Patents (To record one year's amortization) Debit 44800 8960 Credit 44800 8960
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