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4. Munoz Co. incurred $200,000 of research and development costs to develop a producten which a patent was granted on January 12021. Legal fees and
4. Munoz Co. incurred $200,000 of research and development costs to develop a producten which a patent was granted on January 12021. Legal fees and other costs associated with the registration of the patent totaled $90,000. At that time management believed that, based on the competitive environment, the patent had a 10 year useful life, despite its 20 year legal life. On January 1, 2023, Munoz paid $42,000 for legal foes to successfully defend a patent infringement suit upon the successful defense of the potent, management reevaluated the useful life of the patent and changed the estimated useful life to a total of 14 years. The company has a December 31 year-end and amortizes patents on the straight-line basis. Based on the above. determine: a. The balance in the patent account at January 1, 2021 (prior to considering amortization for that year) Legal fees and other costs 90.000 Legal fees 42.000 Research and development 132.000 32,000 b. Amortization expense for the year ended December 31, 2022 332.000//4 = 83.000 DO, 000 c. Amortization expense for the year ended December 31, 2023 M 83,000 per Straight lire metted
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