Amortization Expense
For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense:
a A patent with a year remaining legal life was purchased for $ The patent will be commercially exploitable for another seven years.
b A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $ in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of years and is currently worth $
c A franchise granting exclusive distribution rights for a new wind turbine within a threestate area for four years was obtained at a cost of $ Satisfactory sales performance over the four years permits renewal of the franchise for another four years at an additional cost determined at renewal
tableGeneral JournalRefDescription,Debit,GreditahathatTo record patent amortization.,,bhatTo record patent amortization.,,chathatTo record franchise amortization.,,
