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 before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal >

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 before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal >

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Description: Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $19.80 million cost ofthe patent on a straight-line basis since it was acquired at the beginning of 2020. Due to rapid technological advances

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9PA: For each of the following unrelated situations, calculate the annual amortization expense and...

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Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2020, when it was acquired at a cost of $27.0 million at the beginning of that year. 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 beginning of 2024. Required: Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.5). 1 No > Answer is complete but not entirely correct. Event General Journal 1 Amortization expense Patent Debit Credit 7,500,000.00 7,500,000.00
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