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    llanier08's Avatar
    llanier08 Posts: 1, Reputation: 1
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    #1

    Jan 13, 2007, 04:09 PM
    Accounting homework question
    Dr. Robotniks Inc spent $60,000 in attorney fees while developing the trade name of its new product, The Mean Bean Machine. Prepare the journal entries to record the $60,000 expenditure and the first years amortization, using an 8 year life?

    I would say
    Attorneys fees 60,000
    Cash 60,000

    Amortization expense 7500
    Accumulated amortization 7500
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jan 13, 2007, 08:32 PM
    You need to capitalize the attorney fees.

    If that is what you meant, then I agree with your JE's.
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