Task 2: Analyze the amortization of an intangible asset

Solar Vehicles Inc. discovered a new method of powering a vehicle that can travel an unlimited number of kilometres on a sunny day. As of December 1, 2016, the company incurred $200,000 in research costs and $500,000 in development costs, leading to a successful patent application. The company expects the vehicle to have a useful life of 10 years.

As the companys accountant, you have been asked to prepare the journal entries for these transactions, including any adjustments for the year ended December 31, 2016.

To provide your answer, recreate the following table in a .doc or .docx format using word-processing software. PLEASE EXPLAIN THE ANSWER.

Date	Description	Debit	Credit