Lynne Corporation acquired a patent on May 1, 2008.Lynne paid cash of $20,000 to the seller.Legal fees of $800 were paid related to the acquisition.What amount should be debited to the patent account?

Question

Quizplus · Accepted Answer

The patent account should be debited with the total cost of acquiring the patent, which includes both the purchase price and any related legal fees. Therefore, $20,000 (purchase price) + $800 (legal fees) = $20,800 should be debited to the patent account.

Lynne Corporation Acquired a Patent on May 1, 2008