During 2013, Swifty Corporation spent $174,240 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $49,680 related to the patent were incurred as of October 1, 2013.

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(a)

[Correct answer.] Your answer is correct.

Prepare all journal entries required in 2013 and 2014 as a result of the transactions above. (Round answers to 0 decimal places, e.g. 8,564. 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 0 for the amounts.)

Date Account Titles and Explanation Debit Credit 2013 [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] (To record research and development expenses) 2013 [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] (To record legal expenses) 2013 [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] (To record amortization expense) 2014 [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer]

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Attempts: 1 of 3 used

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(b)

[Correct answer.] Your answer is correct.

On June 1, 2015, Swifty spent $38,880 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016. (Round answers to 0 decimal places, e.g. 8,564. 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 0 for the amounts.)

Date Account Titles and Explanation Debit Credit 2015 [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] (To record patents) 2015 [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] (To record amortization expense) 2016 [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer]

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Attempts: 3 of 3 used

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(c)

In 2017, Swifty determined that a competitors product would make the New Age Piano obsolete and the patent worthless by December 31, 2018. Prepare all journal entries required in 2017 and 2018. (Round answers to 0 decimal places, e.g. 8,564. 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 0 for the amounts.)

Account Titles and Explanation Debit Credit

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