Patent is an intangible asset. Patent is a right to produce and sell specific kind of invention and it can be related to new product, services, process of developing the product efficiently. Patent right is given to use for twenty years.
Amortization means allocating the cost of intangible assets to expense over its useful time period. This is same as
Requirement 1:
To determine:
We have to determine the
Requirement 2:
To determine:
We have to determine the journal entries for amortization for year five.
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