crazie_acct
Dec 6, 2007, 07:59 PM
What is the journal entry for a company who spent $16,000 in successfully prosecuting an attempted infringement of a patent?
pready
Dec 7, 2007, 02:54 PM
Debit the Patent account for 16,000
Credit cash for 16,000
The 16,000 will be amortized over the remaining life of the Patent if the Patent has a limited life.
If the Patent has an indefinite life then the cost is not amortized.