Kleen Company acquired patent rights on January 10 of Year 1 for $472,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $23,500. If required, round your answers to the nearest dollar. a. Determine the patent amortization expense for Year 4 ended December 31. 236,000 X b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. Amortization Expense-Patents Patents 29,500 X 29,500 X

Kleen Company acquired patent rights on January 10 of Year 1 for $472,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $23,500. If required, round your answers to the nearest dollar. a. Determine the patent amortization expense for Year 4 ended December 31. 236,000 X b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. Amortization Expense-Patents Patents 29,500 X 29,500 X

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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On May 1, 2014 Barton Corporation purchased for cash of $37.500 a patent with a useful ife of 10 years. Give the entries to record : a. The purchase of the patent. b. The amortization on December 31, 2014 (calculated to the nearest whole month).
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