emerald_sangria
Sep 27, 2013, 06:48 PM
Amortization of Patent
On December 31, it was estimated that goodwill of $750,000 was impaired. In addition, a patent with an estimated useful economic life of 18 years was acquired for $864,000 on August 1.
Journalize the adjusting entry on December 31 for the amortization of the patent rights.
Dec 31 Amortization Expense-Patents??
Patents??
I've tried 28000 ((864000/18) * (7/12)) and 32000 ((864000/18) * (8/12)) and neither one of these answers seem to be correct.
On December 31, it was estimated that goodwill of $750,000 was impaired. In addition, a patent with an estimated useful economic life of 18 years was acquired for $864,000 on August 1.
Journalize the adjusting entry on December 31 for the amortization of the patent rights.
Dec 31 Amortization Expense-Patents??
Patents??
I've tried 28000 ((864000/18) * (7/12)) and 32000 ((864000/18) * (8/12)) and neither one of these answers seem to be correct.