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A company purchased a patent on January 1, 2017, for $2,500,000. The patent's leqal life is 20 years but the company estimates that the patent's
A company purchased a patent on January 1, 2017, for $2,500,000. The patent's leqal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2017, the company paid legal costs of $162,000 in successfully defending the patent in an infringement suit Indicate the accounts increased/decreased to amortize the patent at year end on December 31, 2017. Account Titles Increase/Decrease Date Amount December 31, 2017 SHOW LIST OF ACCOUNTS Milner Company purchased a franchise from the Tasty Food Company for $450,000 on January 1, 2017. The franchise is for an indefinite time period and gives Milner Company the exclusive rights to sell Tasty Wings in a particular territory Indicate the accounts increased/decreased to record the acquisition of the franchise and any necessary adjustment at year end on December 31, 2017 Increase/Decrease Account Titles Date Amount January 1, 2017
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