Amortization (Learning Objective 6) 5–10 min.

On April 1, Micro Apps paid $750,000 to acquire a patent on software. Micro Apps expects the patent to have a useful life of five years.

Requirements 1. Journalize the entry to record the purchase of the patent on April 1.

2. Journalize the entry to record amortization on December 31.

AppendixLO1