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I was stuck on this question and was just wondering if i was right ABC Company began operations in 20xl and has the following transactions
I was stuck on this question and was just wondering if i was right
ABC Company began operations in 20xl and has the following transactions relating to intangibles during the years 20x1. Match the correct journal entries for the January transactions and the year end amortization. 1/1/xl Purchased a patent for $50,000. Remaining legal life is 10 years, useful life is 5 years. 1/5/xl Research and development costs of $125,000 were incurred to develop a new patent. The useful life is 5 years. Patent 50,000 Cash 50,000 R & D Exp 125,000 Cash 125,000 Amort exp 10,000 Patent/AA 10,000 b) Patent (1) 50,000 Cash 50,000 Patent (2) 125,000 Cash 125,000 Amort exp 10,000 Patent/AA 10,000 Patent 50,000 Cash 50,000 R & D Exp 125,000 Cash 125,000 Amort exp 10,000 Patent/AA (1) 10,000 Amort exp 25.000 Patent/AA (2) 25,000 Patent (1) 50,000 Cash 50,000 Patent (2) 125,000 Cash 125,000 Amort exp 10,000 Patent/AA 10,000Step by Step Solution
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