Broadway Corporation was granted a patent on a product on January 1, 2007. To protect its patent, the corporation purchased on J
anuary 1, 2018 a patent on a competing product which was originally issued on January 10, 2014. Because of its unique plant, Broadway Corporation does not feel the competing patent can be used in producing the product. The cost of the competing patent should be
(A) amortized over a maximum period of 20 years.
(B) amortized over a maximum period of 16 years.
(C) amortized over a maximum period of 9 years.
(D) expensed in 2018.
(A) amortized over a maximum period of 20 years.
(B) amortized over a maximum period of 16 years.
(C) amortized over a maximum period of 9 years.
(D) expensed in 2018.
1 answer:
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Answer:
Explanation:
(A) The preparation of the bank reconciliation statement on July 31, 2017 is presented in the spreadsheet. Kindly find the attachment below:
(B) The journal entries are shown below:
Cash A/c Dr $2,576
To Accounts receivable $,2576
(Being cash is collected)
Bank service charges expense A/c Dr $51
To Cash A/c $51
(Being bank service charges paid)
