Bethany incurred $34,750 in research and experimental costs for developing a specialized product during July of year 1. Bethany went through a lot of trouble and spent $10,250 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.)

References

Section BreakProblem 10-72 (LO 10-4)

4.

value: 0.83 points

Required information

Problem 10-72 Part-a

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?(Round your final answers to nearest whole dollar amount.)

References

eBook & Resources

ProblemDifficulty: 3 Hard

Problem 10-72 Part-aLearning Objective: 10-04 Explain the rationale behind amortization, describe the four categories of amortizable intangible assets, and calculate amortization expense.

Check my work

5.

value: 0.83 points

Required information

Problem 10-72 Part-b

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?

References

eBook & Resources

ProblemDifficulty: 3 Hard

Problem 10-72 Part-bLearning Objective: 10-04 Explain the rationale behind amortization, describe the four categories of amortizable intangible assets, and calculate amortization expense.

Check my work

6.

value: 0.85 points

Required information

Problem 10-72 Part-c

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?