Several years ago,Laurel Company purchased a patent and has since been amortizing it on a straight-line basis over its estimated useful life.The company's comparative balance sheets contain the following items:
?
$$\begin{array} { l c c }
\text { (In thousands) } & \text { December 31,2018 } & \text { December 31, 2017 } \
\text { Patent, less accumul ated amortization of } & \$ 280,000 & \$ 297,500 \
\$ 70,000 ( 2018 ) \text { and } \$ 52,500 ( 2017 ) & &
\end{array}$$ A. How much amortization expense was recorded during 2018 ?

B. How is the amortization expense reported on the company's statement of cash flows?

C. How much was the original cost of the patent?

D. How many years has the patent been amortized?

Question

Several years ago,Laurel Company purchased a patent and has since been amortizing it on a straight-line basis over its estimated useful life.The company's comparative balance sheets contain the following items:
?
 $$\begin{array} { l c c } 
\text { (In thousands) } & \text { December 31,2018 } & \text { December 31, 2017 } \
\text { Patent, less accumul ated amortization of } & \$ 280,000 & \$ 297,500 \
\$ 70,000 ( 2018 ) \text { and } \$ 52,500 ( 2017 ) & &
\end{array}$$ A. How much amortization expense was recorded during 2018 ?

B. How is the amortization expense reported on the company's statement of cash flows?

C. How much was the original cost of the patent?

D. How many years has the patent been amortized?

Quizplus · Accepted Answer

The Answer of Several years ago,Laurel Company purchased a patent and has since been amortizing it on a straight-line basis over its estimated useful life.The company's comparative balance sheets contain the following items:
?
 $$\begin{array} { l c c } 
\text { (In thousands) } & \text { December 31,2018 } & \text { December 31, 2017 } \
\text { Patent, less accumul ated amortization of } & \$ 280,000 & \$ 297,500 \
\$ 70,000 ( 2018 ) \text { and } \$ 52,500 ( 2017 ) & &
\end{array}$$ A. How much amortization expense was recorded during 2018 ?

B. How is the amortization expense reported on the company's statement of cash flows?

C. How much was the original cost of the patent?

D. How many years has the patent been amortized?

Several Years Ago,Laurel Company Purchased a Patent and Has Since