My homework queston was: The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The patent took effect on 1/1/20XX and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expense. What I did was debit Patent (asset) and credit Miscellaneous Expense for 50,000. I also debited Patent Amorization for $2500 ($50000/20) and credited the Patent (asset) Is this correct? If so, does the amortization go in the Balance sheet. If not correct, can you help?