On July 1 2022 Dylan Company purchased a patent from Roy Orbison for $1050000.It is estimated that the patent has a remaining useful life of 5 years.Use the following tabular analysis to make the adjustment for amortization expense for the year 2022.
A)Increase Expenses and decrease Cash $105000.
B)Increase Expenses and decrease Cash $210000.
C)Increase Expenses and decrease Patents $105000.
D)Increase Expenses and decrease Patents $210000.

Question

On July 1 2022 Dylan Company purchased a patent from Roy Orbison for $1050000.It is estimated that the patent has a remaining useful life of 5 years.Use the following tabular analysis to make the adjustment for amortization expense for the year 2022. 
A)Increase Expenses and decrease Cash $105000. 
B)Increase Expenses and decrease Cash $210000. 
C)Increase Expenses and decrease Patents $105000. 
D)Increase Expenses and decrease Patents $210000.

Quizplus · Accepted Answer

The Answer of On July 1 2022 Dylan Company purchased a patent from Roy Orbison for $1050000.It is estimated that the patent has a remaining useful life of 5 years.Use the following tabular analysis to make the adjustment for amortization expense for the year 2022. 
A)Increase Expenses and decrease Cash $105000. 
B)Increase Expenses and decrease Cash $210000. 
C)Increase Expenses and decrease Patents $105000. 
D)Increase Expenses and decrease Patents $210000.

On July 1 2022 Dylan Company Purchased a Patent from Roy