Capri Co. purchased a patent for $150,000 on October 1, 2017. Bauer estimates that the useful life of the patent will be 6 years from the date of acquisition. Expenditures of $54,500 for successful litigation in defence of the patent were paid on January 1, 2019. The total useful life has been changed to 10 years due to the successful defence. Round all answers to the dollar.

What is the carrying value of the patent at December 31, 2017? (1 marks) $

What is the Amortization Expense on the Patent in 2018? (1 marks)

$ What is the new annual Amortization Expense on the Patent in 2019? (1 marks) $

What is the Carrying value of the patent at December 31, 2019? (1 marks) $ If the lawsuit was not successful, how would the legal fees be treated? (1 mark) (Answer Capitalized or Expensed)