Given below are costs incurred during Year 1 and Year 2 by a company that follows the policy of decreasing the intangible asset account directly as amortized.
Research was conducted to discover a new product and costs of $400,000 in Year 1 and $800,000 in Year 2 were incurred.After several months,a product was created and a patent secured for a cost of $180,000,effective as of July 1,Year 2.The company expects to have increased revenues of $500,000 over the next several years.The patent is expected to be useful for the next 10 years.
A) Prepare a partial income statement for the year ended December 31, Year 2.

Question

Given below are costs incurred during Year 1 and Year 2 by a company that follows the policy of decreasing the intangible asset account directly as amortized.
Research was conducted to discover a new product and costs of $400,000 in Year 1 and $800,000 in Year 2 were incurred.After several months,a product was created and a patent secured for a cost of $180,000,effective as of July 1,Year 2.The company expects to have increased revenues of $500,000 over the next several years.The patent is expected to be useful for the next 10 years.
 A) Prepare a partial income statement for the year ended December 31, Year 2.

Quizplus · Accepted Answer

The Answer of Given below are costs incurred during Year 1 and Year 2 by a company that follows the policy of decreasing the intangible asset account directly as amortized.
Research was conducted to discover a new product and costs of $400,000 in Year 1 and $800,000 in Year 2 were incurred.After several months,a product was created and a patent secured for a cost of $180,000,effective as of July 1,Year 2.The company expects to have increased revenues of $500,000 over the next several years.The patent is expected to be useful for the next 10 years.
 A) Prepare a partial income statement for the year ended December 31, Year 2.

Given Below Are Costs Incurred During Year 1 and Year $800,000 \$ 800,000 $800,000

Given Below Are Costs Incurred During Year 1 and Year $\$ 800,000$