Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

تمرين 40

Amortization entries
Smith Company acquired patent rights on January 6, 2013, for $882,000. The patent has a useful life equal to its legal life of nine years. On January 3, 2016, Smith successfully defended the patent in a lawsuit at a cost of $45,000.
a. Determine the patent amortization expense for the year ended December 31, 2016.
b. Journalize the adjusting entry to recognize the amortization.