Question: Bethany incurred $24,500 in research and experimental costs for developing a specialized product during July of year 1. Bethany went through a lot of



Bethany incurred $24,500 in research and experimental costs for developing a specialized product during July of year 1. Bethany went through a lot of trouble and spent $11,750 in legal fees to receive a patent for the product in August of year 3. Bethany expects the patent to have a remaining useful life of 10 years. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) a. What amount of research and experimental expenses for year 1, year 2, and year 3 may Bethany deduct if she elects to amortize the expenses over 60 months? Research and Year experimental expenses 1 3. b. How much patent amortization expense would Bethany deduct in year 3, assuming she elected to amortize the research and experimental costs over 60 months? Deductible patent amortization expense c. If Bethany chose to capitalize but not amortize the research and experimental expenses she incurred in year 1, how much patent amortization expense would Bethany deduct in year 3? Deductible patent amortization expense
Step by Step Solution
3.50 Rating (147 Votes )
There are 3 Steps involved in it
Answers Amortization means the expenditure of intangible assets over the useful life of the assets a... View full answer
Get step-by-step solutions from verified subject matter experts
