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MG Corporation acquired a patent for a new product for $260,000 on 2 January 2013 with a useful life of 12 years. Based on exception
MG Corporation acquired a patent for a new product for $260,000 on 2 January 2013 with a useful life of 12 years. Based on exception market conditions, the patent was estimated to have a useful life of only 8 years. During 2019 the product was determined worthless and to be removed from industry.
Required:
- Write the journal entries to record the patent and amortization charges for 2013? (6 Marks)
- Based on the information given, record the amortization charges for 2019 assuming amortization is recorded at the end of each year? (4 Marks)
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