Answer Happy

Kleen Company acquired patent rights on January 10 of Year 1 for $857,700. The patent has a useful life equal to its legal Me of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $36,000. Required: a. Determine the patent amortization expense for Year 4 ended December 31. Round your answer to the nearest whole dollar. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a creditar ont is entered. Dec. 31 Amortization Expense-Patents
Shaded cells have foodbac Journal b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the chart of accounts for the exact wording of the account tities. CNOW journals not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. How does grading work? DATE DESCRIPTION Adjusting Entries Dec. 31 Amortization Expense-Patents Patents JOURNAL POST. REF. DEBIT Score: 16/25 CREDIT PAGE 1 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY
a. Determine the patent amortization expense for Year 4 ended December 31. Round your answer to the nearest whole dollar. Feedback Check My Work Points: 0/1 For intangible assets with finite lives, a company uses the straight-line method to calculate amortization. If a company successfully defends a patent it becomes part of the cost of the patent. If the company loses a lawsuit regarding a patent infringement, then the patent is written off.