Question
Problem #1 On July1, 2021, Clean TechInc. paid $122,000 to obtain a patent. The cost of the patent registration was $2,500. The patent has a
Problem #1 On July1, 2021, Clean TechInc. paid $122,000 to obtain a patent. The cost of the patent registration was $2,500. The patent has a legal life of 20 years and a useful life of 15 years. The companys fiscal year-end is June 30. On February1, 2023, Clean Tech incurred a cost of $15,000 related to an unsuccessful patent infringement lawsuit.At June 30, 2023management determined that the recoverable amount of the patent is $100,000. Instructions (a)Record the purchase of the patent.(3 marks) (b)Record amortization expense for the year ended June 30, 2023.(3 marks) (c)Record the legal costs incurred on February1, 2023.(3 marks) (d)Determine if there is an impairment loss on the patent and if so, record the June 30, 2023journal entry.(6 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started