On January 2, 2018, David Corporation purchased a patent for $510,000. The remaining legal life...
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On January 2, 2018, David Corporation purchased a patent for $510,000. The remaining legal life is 10 years, but the company estimated that the patent will be useful only for six years. In January 2020, the company incurred legal fees of $60,000 in successfully defending a patent infringement suit. The successful defense did not change the companys estimate of useful life. Required: Prepare journal entries related to the patent for 2018, 2019, and 2020.
1. record the purchase of the paent.
2. Record amortization of the patent for the year 2018.
3. Record amortization of the patent for the year 2019.
4. Record costs of successfully defending the patent infringement suit.
5. Record amortization of the patent for the year 2020.
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