LO 12.1 LO 12.4 During Year 1, Traco\ Machine Company spent

$176,000

on

R&D

\ costs for an inventipn. This invention was patented on January 2, Year 2, at a nominal cost that was expensed in Year 2. The patent had a legal life of 20 years and an estimated useful life of 8 years. In January Year 6, Traco paid

$16,000

for legal fees in a successful defense of the patent. Amortization for Year 6 should be:

LO 12.1 L0 12.4 During Year 1, Traco Machine Company spent $176,000 on R\&D costs for an inventipn. This invention was patented on January 2, Year 2, at a nominal cost that was expensed in Year 2. The patent had a legal life of 20 years and an estimated useful life of 8 years. In January Year 6, Traco paid $16,000 for legal fees in a successful defense of the patent. Amortization for Year 6 should be