Answer:
Van Frank Telecommunications
December 31, 2016:
Debit Amortization Expense - Patent $4,400,000
Credit Accumulated Amortization-Patent $4,400,000
To record the revised amortization expense for the year.
Explanation:
Data and Calculations:
Patent's value on January 1, 2012 = $19,800,000
Patent's assessed lifespan = 9 years
Amortization expense for each year on straight-line = $2,200,000 ($19,800,000/9)
Accumulated Amortization for Patent = $6,600,000 (for 3 years)
Net book value of patent = $13,200,000 ($19,800,000 - $6,600,000)
Revised lifespan = 6 years
Revised amortization expense per year = $4,400,000 ($13,200,000/3)
