Fanatics Company purchased a patent at the beginning of Year 1 for $450,000.Economic benefits were expected for only 10 years,but the patent's legal life is 20 years.Also during Year 1,the company incurred research and development costs of $185,000.
A) Determine the following amounts:
1. research and development expense for Year 1
2. patent amortization expense for Year 1

Question

Fanatics Company purchased a patent at the beginning of Year 1 for $450,000.Economic benefits were expected for only 10 years,but the patent's legal life is 20 years.Also during Year 1,the company incurred research and development costs of $185,000.
 A) Determine the following amounts:
1. research and development expense for Year 1
2. patent amortization expense for Year 1

Quizplus · Accepted Answer

The Answer of Fanatics Company purchased a patent at the beginning of Year 1 for $450,000.Economic benefits were expected for only 10 years,but the patent's legal life is 20 years.Also during Year 1,the company incurred research and development costs of $185,000.
 A) Determine the following amounts:
1. research and development expense for Year 1
2. patent amortization expense for Year 1

Fanatics Company Purchased a Patent at the Beginning of Year