A company purchased a patent on January 1, 2014, for $1,992,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 12 years from the date of acquisition. On September 30, 2019, the company paid legal costs of $140,000 in successfully defending the patent in an infringement suit. Required: Based on the above given information answer the following questions: 1. What is the is the amount of the amortization expense that must be presented on the company's income statement for the year 2017? The answer is: 2. As on 31/12/2018, the company must present the patent on its + with an amount of 3. What is the is the amount of the amortization expense that must be presented on the company's income statement for the year 2019? The answer is:

A company purchased a patent on January 1, 2014, for $1,992,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 12 years from the date of acquisition. On September 30, 2019, the company paid legal costs of $140,000 in successfully defending the patent in an infringement suit. Required: Based on the above given information answer the following questions: 1. What is the is the amount of the amortization expense that must be presented on the company's income statement for the year 2017? The answer is: 2. As on 31/12/2018, the company must present the patent on its + with an amount of 3. What is the is the amount of the amortization expense that must be presented on the company's income statement for the year 2019? The answer is:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 3P

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