Question 2
	Date	Cash	Patent, at cost	Accumulated	Retained Earnings	Comments on Retained Earnings (e.g., Revenues, Expenses, Gains or losses)
				Amortization
1	1/1/20X1
2	12/31/20X1
3	During 20X1

Question 2 Cohen Company purchased a patent on 1/1/20X1 for $500m. The patent has a useful life of 5 years. The company also spent $300m in 20X1 on research and development towards developing new patents. Provide the entries the company will make for the following transactions: 1. Purchase of the patent on 1/1/20X1 2. Use of the purchased patent during 20X1 3. Spent $300m on research and development in 20X1