Question
In 2019, Price Company expended $325,000 on a research project. In 2020, Price obtained a patent for this project. Legal and administrative costs to secure
In 2019, Price Company expended $325,000 on a research project. In 2020, Price obtained a patent for this project. Legal and administrative costs to secure the patent totaled $116,000. The patent had an expected useful life of 5 years. Price capitalized the patent and recorded a full years amortization.
In January 2021, Price successfully defends the patent in extended litigation at a cost of $147,200, thereby extending the patents useful life to December 31, 2028. The company also recorded a full years amortization on the extended litigation costs.
Prepare Prices journal entries to record the above transactions on the dates noted. Unless otherwise stated, assume all expenditures were paid with cash.
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What is the carrying value of the patent on January 1, 2026? | $ |
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