A patent was acquired by Crane Corporation on January 1, 2017, at a cost of $104,000. The useful life of the patent was estimated to be 10 years. At the beginning of 2020, Crane spent $17,780 in successfully defending an infringement of the patent. At the beginning of 2021, Crane purchased a patent for $20,160 that was expected to prolong the life of its original patent for 5 additional years.

Calculate the amortization expense for 2017.

Calculate the balance in the Patent account at the beginning of 2020, immediately after the infringement suit.

Balance in the Patent account

Calculate the amortization expense for 2020.

Amortization expense

Calculate the balance in the Patent account at the beginning of 2021, after purchase of the additional patent.

Balance in the Patent account

Calculate the amortization expense for 2021.

Amortization expense

Amortization Expense