Klein Company acquired patent rights on January 10 of Year 1 for $488,000. The patent has a useful life equal to its legal life of 8 years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $24,500.

Kleen Company acquired patent rights on January 10 of Year 1 for $488,000. The patent has a useful life equal to its legal life of 8 years. On January 7 of Year 4 , Kleen successfully defended the patent in a lawsuit at a cost of $24,500. a. Determine the patent amortization expense for the Year 4 ended December 31. $ Feedback Check My Work For intangible assets with finite lives, a company uses the straight-line method to calculate amortization. If a company successfully defends a patent it becomes part of the cost of the patent. If the company loses a lawsuit regarding a patent infringement, then the patent is written off. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank