On October 1, 2018, Northern Inc. purchased a patent for $205,000 cash. Although the patent gives...

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On October 1, 2018, Northern Inc. purchased a patent for $205,000 cash. Although the patent gives legal protection for 20 yea

business accounting

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Answer 1

Answer #1

Amortization of patent for 2018 = (205,000/10*3/12) = 5125

Amortization of patent upto Sep 30, 2019 = (205,000/10*9/12) = 15,375

Book balance = 205,000 - (5125+15375)

= 184,500

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Answer 2

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On October 1, 2018, Northern Inc. purchased a patent for $205,000 cash. Although the patent gives...

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