Wang Fitness Co. purchased a patent at the beginning of 2017 for $120,000. Economic benefits were expected for only 12 years, but the patent's legal life is 17 years. Also, during 2017, the company incurred research and development costs of $50,000.

A. Determine the following amounts:

1. Research and development expense for 2017
2. Patent amortization expense for 2017

B. Prepare the Intangible Assets section of the balance sheet at December 31, 2017.

Question

Wang Fitness Co. purchased a patent at the beginning of 2017 for $120,000. Economic benefits were expected for only 12 years, but the patent's legal life is 17 years. Also, during 2017, the company incurred research and development costs of $50,000.

A. Determine the following amounts:
 
1.	Research and development expense for 2017
2.	Patent amortization expense for 2017

B. Prepare the Intangible Assets section of the balance sheet at December 31, 2017.

Quizplus · Accepted Answer

The Answer of Wang Fitness Co. purchased a patent at the beginning of 2017 for $120,000. Economic benefits were expected for only 12 years, but the patent's legal life is 17 years. Also, during 2017, the company incurred research and development costs of $50,000.

A. Determine the following amounts:
 
1.	Research and development expense for 2017
2.	Patent amortization expense for 2017

B. Prepare the Intangible Assets section of the balance sheet at December 31, 2017.