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On January 1, 2018, Sally, Inc. bought a patent for $100,000. There were ten years left of the patent's legal life. On July 1, 2020,
On January 1, 2018, Sally, Inc. bought a patent for $100,000. There were ten years left of the patent's legal life. On July 1, 2020, the company successfully defended the patent in court at a cost of $30,000.
Required: Compute the amount of patent amortization expense for 2020. Assume Sally calculates amortization to the nearest month and uses the straight-line method.
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