Felipe Company purchases a patent for $120,000 on January 2, 2014. Its estimated useful life is 8

Question:

Felipe Company purchases a patent for $120,000 on January 2, 2014. Its estimated useful life is 8 years.
(a) Prepare the journal entry to record amortization expense for the first year.
(b) Show how this patent is reported on the at the end of the first year.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...