On January 1, 2015, Weaver Corporation purchased a patent for $ 237,000. The remaining legal life is

Question:

On January 1, 2015, Weaver purchased a patent for $ 237,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2017, the company incurred legal fees of $ 57,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Weaver Corporation’s year- end is December 31.

Required:
1. Record the purchase in 2015; amortization in 2015; amortization in 2016; legal fees in 2017; and amortization in 2017.
2. What is the balance in the Patent account at the end of 2017?

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...