Question

NEED HELP!!!!!!

Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $368,000. 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 $18,500. If required, round your answer to the nearest dollar. a. Determine the patent amortization expense for the Year 4 ended December 31. 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.

Answer 1

a.

On January 1, year 4, $18,500 were spent to defend the patent is lawsuit.

It will be amortized over the remaining useful life of the patent.

Patent amortization expense in year 4 = Cost of patent / Useful life + Cost of lawsuit / Remaining useful life

= 368,000/8 + 18,500/5

= 46,000+3,700

= $49,700

b.

Date	General Journal	Debit	Credit
Year 4, December 31	Amortization expense - Patent	$49,700
	Patent		$49,700

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Thanks‼!