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On January 1, Year 1, Venus Corporation purchased a patent from Mars Corporation by agreeing...

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Accounting

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On January 1, Year 1, Venus Corporation purchased a patent from Mars Corporation by agreeing to make payments of $40,000 at the beginning of each year for the next seven years, starting January 1, Year 1. Venus could borrow money from the bank at a rate of 6 percent per year. The patent has a life of 9 years. Required: Make the journal entries to record the following: A. The purchase of the patent and the first payment B. Interest expense at the end of Year 1 C. Amortization expense on the patent at the end of Year 1

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