Question
Company A purchased a patent from Company B for $44,000 on January 1, 2019. Company A estimated the patent would be useful for 10 years.
Company A purchased a patent from Company B for $44,000 on January 1, 2019. Company A estimated the patent would be useful for 10 years. Effective January 1, 2021, Company A estimates that the remaining life of the patent purchased from Company B is only five more years. How much is the adjusting entry to amortize the patent on December 31, 2021?
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Accounting And Finance An Introduction
Authors: Eddie McLaney, Peter Atrill
10th Edition
1292312262, 978-1292312262
