Answered: What should be the amortization expense…

Business

Accounting

What should be the amortization expense for 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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Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $19.80 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2020. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2024 (before adjusting and closing entries). What is the appropriate adjusting entry for patent amortization in 2024 to reflect the revised estimate? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). View transaction list Journal entry worksheet < 1 Record the adjusting entry for patent amortization in 2024. Note: Enter debits…