The Lopez Company was organized at the end of 2010.The following items acquired on January 1, 2011, were listed by the company as intangible assets at the end of 2011:
At the beginning of 2011, Lopez also purchased a research building at a cost of $275, 000.The company estimates that the building will be used in numerous projects over a 20-year period.During the year, Lopez spent $75, 000 on research and development materials and salaries.In early January 2011, Lopez purchased a patent for $60, 000 that was used exclusively for a single research project conducted during 2011.Lopez uses straight-line amortization over the maximum allowable periods.In addition, on July 1, 2011, Lopez incurred legal fees of $23, 400 to defend the new patent that had been acquired for $60, 000.Lopez's lawyers were successful in the defense of the patent.
Required:
Determine the amortization expense for intangibles for 2011.Lopez calculates amortization expense to the nearest month.

Question

The Lopez Company was organized at the end of 2010.The following items acquired on January 1, 2011, were listed by the company as intangible assets at the end of 2011:
  At the beginning of 2011, Lopez also purchased a research building at a cost of $275, 000.The company estimates that the building will be used in numerous projects over a 20-year period.During the year, Lopez spent $75, 000 on research and development materials and salaries.In early January 2011, Lopez purchased a patent for $60, 000 that was used exclusively for a single research project conducted during 2011.Lopez uses straight-line amortization over the maximum allowable periods.In addition, on July 1, 2011, Lopez incurred legal fees of $23, 400 to defend the new patent that had been acquired for $60, 000.Lopez's lawyers were successful in the defense of the patent.
Required:
Determine the amortization expense for intangibles for 2011.Lopez calculates amortization expense to the nearest month.

Quizplus · Accepted Answer

The Answer of The Lopez Company was organized at the end of 2010.The following items acquired on January 1, 2011, were listed by the company as intangible assets at the end of 2011:
  At the beginning of 2011, Lopez also purchased a research building at a cost of $275, 000.The company estimates that the building will be used in numerous projects over a 20-year period.During the year, Lopez spent $75, 000 on research and development materials and salaries.In early January 2011, Lopez purchased a patent for $60, 000 that was used exclusively for a single research project conducted during 2011.Lopez uses straight-line amortization over the maximum allowable periods.In addition, on July 1, 2011, Lopez incurred legal fees of $23, 400 to defend the new patent that had been acquired for $60, 000.Lopez's lawyers were successful in the defense of the patent.
Required:
Determine the amortization expense for intangibles for 2011.Lopez calculates amortization expense to the nearest month.

The Lopez Company Was Organized at the End of 2010