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Crane Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019 the company expends $175,000
Crane Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019 the company expends $175,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. (b) The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $198,800. The administrative and legal costs incurred in obtaining the patent in 2020 total $12,600. The patent has an expected useful life of 6 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Research and Development Expense 198800 Cash 198800 (To record research and development costs) Patent Expense 12600 Cash 12600 (To record legal and administrative costs) Amortization Expense Patents (To record one year's amortization expense)
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