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  • Dec 6, 2007, 07:59 PM
    crazie_acct
    Journal entry for Patents
    What is the journal entry for a company who spent $16,000 in successfully prosecuting an attempted infringement of a patent?
  • Dec 7, 2007, 02:54 PM
    pready
    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.

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