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On April 1, 20X1, Beta Corporation acquired a patent for $100,000 cash. The patent has a useful life of 10 years. Using the straight-line method,
On April 1, 20X1, Beta Corporation acquired a patent for $100,000 cash. The patent has a useful life of 10 years. Using the straight-line method, calculate the amortization expense for the year 20X1.
Additionally, Beta Corporation made the following transactions during 20X1:
- May 15: Paid $8,000 in legal fees related to the acquisition of the patent.
- August 1: Purchased additional patent rights for $20,000.
- October 1: Paid $5,000 for patent maintenance fees.
Required:
- Calculate the total amortization expense for the year 20X1 for the patent.
- Prepare the journal entries to record the patent-related transactions for Beta Corporation during the year 20X1.
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