Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare...

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Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: a. A patent with a 15-year remaining legal life was purchased for $261,000. The patent will be commercially exploitable for another nine years. b. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $38,700 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 18 years and is currently worth $378,000. c. A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for four years was obtained at a cost of $59,000. Satisfactory sales performance over the four years permits renewal of the franchise for another four years (at an additional cost determined at renewal). Ref. General Journal Description Debit Credit To record patent amortization. To record patent amortization. 4 To record franchise amortization. Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: a. A patent with a 15-year remaining legal life was purchased for $261,000. The patent will be commercially exploitable for another nine years. b. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $38,700 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 18 years and is currently worth $378,000. c. A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for four years was obtained at a cost of $59,000. Satisfactory sales performance over the four years permits renewal of the franchise for another four years (at an additional cost determined at renewal). Ref. General Journal Description Debit Credit To record patent amortization. To record patent amortization. 4 To record franchise amortization.

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