Question
Kingbird Limited purchased a patent for $81,600 on June 1, 2019. Kingbird has a calendar fiscal year end. Straight-line amortization is used for the patent,
Kingbird Limited purchased a patent for $81,600 on June 1, 2019. Kingbird has a calendar fiscal year end. Straight-line amortization is used for the patent, based on a five-year useful life, although the remaining legal life was 10 years. On May 31, 2021, Kingbird paid $24,000 in legal fees to successfully defend this patent in court and now wants to revise the estimate of the patents remaining useful life to 8 years, which is the same as its remaining legal life.
(a)
Correct answer icon
Your answer is correct.
Record the purchase of the patent on June 1, 2019. (Credit account titles are automatically indented when the 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 |
June 1, 2019 | |||
eTextbook and Media
Assistance Used
- eTextbook
List of Accounts
Attempts: 2 of 3 used
(b)
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Your answer is correct.
Record amortization expense for the fiscal years 2019 and 2020. (Credit account titles are automatically indented when the 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 |
Dec. 31, 2019 | |||
Dec. 31, 2020 | |||
eTextbook and Media
List of Accounts
Attempts: 1 of 3 used
(c)
- Your Answer
- Correct Answer
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Your answer is correct.
Record the payment of the legal fees on May 31, 2021. (Credit account titles are automatically indented when the 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 |
May 31, 2021 | |||
eTextbook and Media
Assistance Used
List of Accounts
Assistance Used
Attempts: 3 of 3 used
(d)
Partially correct answer icon
Your answer is partially correct.
Record any necessary amortization prior to the change in the useful life of the patent. (Credit account titles are automatically indented when the 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 |
May 31, 2021 | |||
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