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Rakko, Inc. acquired a patent on January 1 for $70,000 cash. The patent was estimated to have a useful life of 14 years with
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Date

Particulars

Dr

Cr

A)

Jan 1

Patent (Intangible asset)   a/c Dr

$70,000

cash a/c

$70,000

(Being patent acquired for cash)

B)

Dec 31st

Amortisation of Patent a/c (70k/14) Dr

$5000

Patent a/c

$5000

(Being annual amortisation for the year ended dec 31st)


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