Thompson Company incurred research and development costs of $100,000 and legal fees of $30,000 to acquire a patent. The patent h

Question

3 years ago

15

Thompson Company incurred research and development costs of $100,000 and legal fees of $30,000 to acquire a patent. The patent h

as a legal life of 20 years and a useful life of 10 years. What amount should Thompson record as Patent Amortization Expense in the first year?a. 0b. 3,000c. 6,500d. 13,000

Business

2 answers:

maria [59] · Answer 1 · 2022-01-24T20:54:22+03:00

maria [59]3 years ago

8 0

Heya mate!!

Option 3000 is the answer to your question.

Hope it helps u dear✌️✌️

wariber [46] · Answer 2 · 2022-01-24T18:26:58+03:00

Answer:

b. 3,000

Explanation:

The computation of the Patent Amortization Expense in the first year is shown below:

= Legal fees to acquire a patent ÷ estimated useful life

= $30,000 ÷ 10 years

= $3,000

Only the legal expense would be amortized in a year.

And, the lesser period of legal life i.e 20 years and useful life i.e 10 years would be taken in the computation part. So, the lesser time period would be considered i.e useful life of 10 years