Question
Indigo Corporation purchases a patent from Sandhill Company on January 1, 2017, for $54,000. The patent has a remaining legal life of 12 years. Indigo
Indigo Corporation purchases a patent from Sandhill Company on January 1, 2017, for $54,000.
The patent has a remaining legal life of 12 years.
Indigo feels the patent will be useful for 10 years.
Prepare Indigo's journal entries to record the purchase of the patent and 2017 amortization.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
| Account Titles and Explanation | Debit | Credit |
|---|---|---|
| (To record purchase of patents) | ||
| (To record amortization of patents) |
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A patent is an intangible asset and is amortized over its useful life The useful life of the ...
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
