Question

Amortization Entries

Kleen Company acquired patent rights on January 10 of Year 1 for $432,000. 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 $21,500.

If required, round your answer to the nearest dollar.

a. Determine the patent amortization expense for the Year 4 ended December 31.
$

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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

Answer 1

Requirement a Amortization expense for year 4 ended December 31 = (432,000/8)+(21,500/5) =58,300 Requirement b Credit Date Account Dec. 31, Yr 4 Amortization expense-Patents Patents Debit 58,300 58,300 58,300 58,300