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Aleksandr-060686 [28]
4 years ago
7

On January 2, 2019, Adelphi Company purchased a patent for $235,000 plus

Business
1 answer:
Ymorist [56]4 years ago
4 0

Answer:

The annual amortization expense for 2019 will be $35000.

Explanation:

The amortization expense for the patent calculated based on the useful life of patent. The purchase of value of $235000 plus $10000 gives the total value of $245000 while use the patent of 7 years.

The formula for amortization expense = (Cost of patent - Residual value ) / Useful life of patent)

amortization expense = ($245000-0)/7 = $35000

The legal life would not count due patent in business use for limited life compare to legal life of patent.

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