Sunland Company purchases a patent for $186,200 on January 2, 2017. Its estimated useful life is...
Sunland Company purchases a patent for $186,200 on January 2,
2017. Its estimated useful life is 8 years.
(a) Compute amortization expense for the first year.
(b) Show how this patent is reported on the balance sheet at the
end of the first year.
Homework Answers
Answer
- Requirement [a]
Amortisation expense = $ 186,200 / 8
years
= $ 23,275
- Requirement [b]
|
Balance Sheet Partial |
|
|
Intangible Assets: |
|
|
Patents |
$186,200 |
|
Less: Accumulated Amortisation |
$23,275 |
|
$162,925 |
|
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