Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Patent amortization (https://www.askmehelpdesk.com/showthread.php?t=144584)

  • Oct 24, 2007, 06:18 PM
    nurseb
    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.
  • Oct 26, 2007, 02:38 PM
    nurseb
    Quote:
    Originally Posted by nurseb
    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.
    A. Amortization Expense $200,000
    Patent $200,000

    • All times are GMT -7. The time now is 05:10 AM.