Amortization of intangible assets. (LO 3)

Edgewood Company obtained a patent for a new invention. The costs associated with the patent totaled \(\$ 35,000\). With the rapid development of new technology, Edgewood's engineers have estimated the invention will not have any value after 10 years. The patent has a legal life of 20 years. How will Edgewood amortize the cost of the patent?

\section*{SE4-14. Amortization of intangible assets. (LO 3)}

Barclay Company purchased a patent for \(\$ 50,000\) on January 1, 2007. The estimated useful life is 10 years. The legal life is 20 years. What is the amortization expense for the fiscal year ended December 31, 2007?