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lisov135 [29]
3 years ago
14

Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful life equal to its legal lif

e of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $38,000. a. Determine the patent amortization expense for Year 4 ended December 31. $ b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank.
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
3 0

Answer:

Explanation:

a    

Patent amortization expense= (2800000/8)+(38000/5) =357600

b    

Dr Amortization expense 357600  

       Cr Patents  357600

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