Compute the amount of amortization that would be recorded

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Kingston, Inc., acquired a patent on January 1, 2016 for $40,000 cash. The patent was estimated to have a useful life of 10 years with no residual value, and the firm decided to use straight-line amortization. On January 1, 2017, management determined that the remaining useful life was actually only 6 years. On June 30, 2018, the patent was sold for $25,000.

Problem 1: Show the journal entry to record the acquisition of the patent on January 1, 2016

Problem 2: Show the journal entry to record amortization of the patent for 2016

Problem 3: Compute the amount of amortization that would be recorded for 2017

Problem 4: Prepare the journal entry to record the sale of the patent on June 30, 2018

Reference no: EM132693201

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