Jaguar Corp.purchased a patent on January 2,2009,for $700,000.The original life of the patent was estimated to be 14 years.In December of 2014,the company received information that the patent would be obsolete within 4 years.Accordingly,the company decided to write off the unamortized portion of the patent cost over 5 years beginning in 2014.
How would the change in useful life be reflected in the accounts for 2014 and subsequent years?

Question

Quizplus · Accepted Answer

The Answer of Jaguar Corp.purchased a patent on January 2,2009,for $700,000.The original life of the patent was estimated to be 14 years.In December of 2014,the company received information that the patent would be obsolete within 4 years.Accordingly,the company decided to write off the unamortized portion of the patent cost over 5 years beginning in 2014.
How would the change in useful life be reflected in the accounts for 2014 and subsequent years?