Gooden Enterprises Inc. developed a new machine for manufacturing baseballs. Because the machine is considered very valuable, the company had it patented. The following expenditures were incurred in developing and patenting the machine.

Gooden elected to amortize the patent over its legal life. At the beginning of the second year, Gooden Enterprises paid $24,000 to successfully defend the patent in an infringement suit. At the beginning of the fourth year Gooden determined that the remaining estimated useful life of the patent was five years.
Record the above transactions in general journal form for Gooden Enterprises Inc. for the first five years of the life of the patent. Include any amortization or depreciation for each period.

Question

Gooden Enterprises Inc. developed a new machine for manufacturing baseballs. Because the machine is considered very valuable, the company had it patented. The following expenditures were incurred in developing and patenting the machine.
  
Gooden elected to amortize the patent over its legal life. At the beginning of the second year, Gooden Enterprises paid $24,000 to successfully defend the patent in an infringement suit. At the beginning of the fourth year Gooden determined that the remaining estimated useful life of the patent was five years.
Record the above transactions in general journal form for Gooden Enterprises Inc. for the first five years of the life of the patent. Include any amortization or depreciation for each period.

Quizplus · Accepted Answer

The Answer of Gooden Enterprises Inc. developed a new machine for manufacturing baseballs. Because the machine is considered very valuable, the company had it patented. The following expenditures were incurred in developing and patenting the machine.
  
Gooden elected to amortize the patent over its legal life. At the beginning of the second year, Gooden Enterprises paid $24,000 to successfully defend the patent in an infringement suit. At the beginning of the fourth year Gooden determined that the remaining estimated useful life of the patent was five years.
Record the above transactions in general journal form for Gooden Enterprises Inc. for the first five years of the life of the patent. Include any amortization or depreciation for each period.