During 2000, a corporation spent $170,000 in research and development costs. As a result, a new product

Question:

During 2000, a spent $170,000 in research and development costs. As a result, a new product was patented. The patent was obtained on October 1, 2000, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $18,000 related to the patent were incurred as of Oct. 1, 2000.
Prepare journal entries required in 2000 and 2001 as a result of the transaction above.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...