Pina Colada Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $85,950. The patent had a remaining legal life of 15 years. In January 2025, Pina Colada spends $27,920 successfully defending a patent suit. In addition, Pina Colada now feels the patent will be useful only for another seven years. Prepare the journal entries to record the 2025 expenditure and amortization for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
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Pina Colada Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $85,950.
The patent had a remaining legal life of 15 years. In January 2025, Pina Colada spends $27,920
successfully defending a patent suit. In addition, Pina Colada now feels the patent will be useful
only for another seven years. Prepare the journal entries to record the 2025 expenditure and
amortization for the year. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O
for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries.)
Transcribed Image Text:Pina Colada Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $85,950. The patent had a remaining legal life of 15 years. In January 2025, Pina Colada spends $27,920 successfully defending a patent suit. In addition, Pina Colada now feels the patent will be useful only for another seven years. Prepare the journal entries to record the 2025 expenditure and amortization for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries.)
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