Answer:
(A)
research and development expense 325,000
cash 325,000
to record expense for 2016
(B)
research and development expense 100,000
cash 100,000
to record expense for 2017
patent 116,000
research and development expense 100,000
cash 16,000
to record capitalization of research cost on patents
(C)
amorization expense 23,200
patent 23,200
to record amortization of the patent for full-year
Explanation:
(A) the cost will de considered expense, as there is no relationship with a cash inflow in the future periods to make a capitalization feasible.
(B) the cost will be capitalized along wih the patent cost under patent account
(C)
amortization using straight-line:
value / useful-line = depreciation per year
116,000 / 5 = 23,200 depreciation per year
because we use full-year we use the entire deprecition per year.
