Fanatics Company purchased a patent at the beginning of the year for $450,000. Economic benefits were expected for only 10 years, but the patent's legal life is 20 years. Also during the year, the company incurred research and development costs of $185,000.
A)Determine the following amounts:
1.Research and Development Expense for the year
2.Patent Amortization Expense for the year
B)Prepare the intangible assets section of the balance sheet at the end of the year

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The Answer of Fanatics Company purchased a patent at the beginning of the year for $450,000. Economic benefits were expected for only 10 years, but the patent's legal life is 20 years. Also during the year, the company incurred research and development costs of $185,000.
A)Determine the following amounts:
1.Research and Development Expense for the year
2.Patent Amortization Expense for the year
B)Prepare the intangible assets section of the balance sheet at the end of the year

Fanatics Company Purchased a Patent at the Beginning of the Year