Lynne Corporation acquired a patent on May 1, 2014. Lynne paid cash of $45,000 to the seller. Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account?

Question

Quizplus · Accepted Answer

The amount to be debited to the patent account includes the purchase price of the patent ($45,000) plus any additional costs directly related to the acquisition, such as legal fees ($1,000), totaling $46,000.

Lynne Corporation Acquired a Patent on May 1, 2014