Accounts Payable Accounts Receivable Advertising Expense Amortization Expense Buildings Cash Computer Software Costs Copyrights Discount on Bonds Payable Equipment Franchises Goodwill Income Summary Intangible Assets Interest Expense Inventory Land Legal Fees Expense Loss on Impairment Long-term Notes Payable No Entry Notes Payable Organization Expense Paid-in Capital in Excess of Par - Common Stock Patents Patent Expense Prepaid Rent Recovery of Loss from Impairment Rent Expense Rent Receivable Rent Revenue Research and Development Expense Retained Earnings Trade Names Trademarks

Exercise 12-16 Blossom Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2016, the company expends $331,000 on a research project, but by the end of 2016 it is impossible to determine whether any benefit will be derived from it. Your answer is partially correct. Try again. The project is completed in 2017, and a successful patent is obtained. The R&D costs to complete the project are $121,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2017 total $18,200. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Debit Credit 121000 Research and Development Expense Cash 121000 To record research and development costs) 18200 18200 To record legal and administrative costs) 3640 Amortization Expense Patents 3640 In 2018, the company successfully defends the patent in extended litigation at a cost of $57,600, thereby extending the patent life to December 31, 2025. What is the proper way to account or this cost? Also, record patent amortization (full year) in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Account Titles and Explanation Debit Credit (To record legal cost of successfully defending patent) To record one year's amortization)