| Patent amortization
On January 1, 2005, Giant Planting purchased a patent for a new rose for $1,000,000. The patent has a legal life of 10 years and a useful life of 5 years. What adjusting journal entry should Giant prepare on December 31, 2005, relative to this patent?
a. Amortization Expense $200,000
Patent $200,000
b. Amortization Expense $200,000
Accumulated Amortization $200,000
c. Amortization Expense $100,000
Patent $100,000
d. Amortization Expense $100,000
Accumulated Amortization $100,000
e. No adjusting entry is necessary at December 31, 2005.
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