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As you can see from the answer to the question, there is a debit to retained earnings for both franchise amortization expense and rent expense. Why is there no similar debit for patent amortization expense? Thanks!

PROBLEMS P12-1 (L01,2,3,5) GROUPWORK (Correct Intangible Assets Account) Reichenbach Co, organized in 2016, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2017 and 2018. Intangible Assets 7/1/17 10/1/17 12/31/17 8-year franchise; expiration date 6/30/25 Advance payment on laboratory space (2-year lease) Net loss for 2017 including state incorporation fee, $1,000, and S 48,000 24,000 related legal fees of organizing, $5,000 (all fees incurred in 2017) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs 16,000 84,000 75,000 278,400 12,650 160,000 1/2/18 6/1/18 9/1/18 Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangi- bles. Make the entries as of December 31, 2018, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income tax effects.) The Tourmal Entries are as follows: Account Title Debit S Credit S Dec-31 Franchise Prepaid Rent Retained Earnings(16000-6000) Patents(84000+12650) R&D e Goodwill 48,000 24,000 10,000 96,650 2,35,000 2,78,400 75000+160000 Intangible Assets 6,92,050 Dec-31 Franchise Amortisatiorn 6,000 3,000 (48000/8) (48000/8)x6/12 Se Retained Earnin Franchise 9,000 Dec-31 Rent E 12,000 3,000 (24000/2) (24000/2)x3/12 Se Retained Earnin Prepaid Rent 15,000 Dec-31 Patent Amortisation 9,170 Se Patents 9,170

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