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During 2 0 2 1 , Novak Corporation spent $ 1 5 8 , 4 0 0 in research and development costs. As a result,
During Novak Corporation spent $ in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October and had a legal life of years and a useful life of years. Legal costs of $ related to the patent were incurred as of October
a
b
Your answer is correct.
On June Novak spent $ to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to years from June Prepare all journal entries required in and 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. List all debit entries before credit entries. Record entries in the order displayed in the problem statement
Date
Account Titles and Explanation
Debit
Credit
To record cost of infringement suit
Am
To record amortization expense
In Novak determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December Prepare all journal entries required in and 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. List debit entry before credit entry.
Date
Account Titles and Explanation
Debit
Credit
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