Homework Answers
| From January 2014 to December 2017 : | |
| Amortization per year = Cost / Remaining economic life = 231000 / 7 | 33000 |
| Amortization till December 2017 = Amortization per year * 4 = 33000 * 4 | 132000 |
| Written down value of patent as of December 2017 = Cost - Amortization till December 2017 = 231000 - 132000 | 99000 |
| As, lawyers were successful in defending the case, the legal cost will be amortized | |
| Written down value as of January 2018 = 99000 + 30000 | 129000 |
| Patent amortization expense for 2018 = Written down value as of January 2018 / Remaining economic life = 129000 / 6 | 21500 |
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