Panther Corp. purchased a patent on January 2, 2006, for $700,000. The original life of the patent was estimated to be 14 years. In December of 2011, the company received information that the patent would be obsolete within 4 years. Accordingly, the company decided to write off the unamortized portion of the patent cost over 5 years beginning in 2011.
How would the change in useful life be reflected in the accounts for 2011 and subsequent years?

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The Answer of Panther Corp. purchased a patent on January 2, 2006, for $700,000. The original life of the patent was estimated to be 14 years. In December of 2011, the company received information that the patent would be obsolete within 4 years. Accordingly, the company decided to write off the unamortized portion of the patent cost over 5 years beginning in 2011.
How would the change in useful life be reflected in the accounts for 2011 and subsequent years?