Wang Fitness Co. purchased a patent at the beginning of 2015 for $120,000. Economic benefits were expected for only 12 years, but the patent's legal life is 17 years. Also during 2015, the company incurred research and development costs of $50,000.
A. Determine the following amounts:
1. Research and development expense for 2015
2. Patent amortization expense for 2015
B. Prepare the intangible assets section of the balance sheet at December 31, 2015.

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The Answer of Wang Fitness Co. purchased a patent at the beginning of 2015 for $120,000. Economic benefits were expected for only 12 years, but the patent's legal life is 17 years. Also during 2015, the company incurred research and development costs of $50,000.
A. Determine the following amounts:
1. Research and development expense for 2015
2. Patent amortization expense for 2015
B. Prepare the intangible assets section of the balance sheet at December 31, 2015.