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Microsoft Corporation purchased a patent for $1,800,000 cash. The patent has a remaining legal life of 20 years. Calculate the annual amortization expense for the
ยทMicrosoft Corporation purchased a patent for $1,800,000 cash. The patent has a remaining legal life of 20 years. Calculate the annual amortization expense for the patent using the straight-line method. If Microsoft Corporation sells the patent after 15 years for $900,000 cash, record the journal entry to recognize the sale and determine the gain or loss on disposal.
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