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In early January 2011, Lopez purchased a patent for $60,000 that was used exclusively for a single research project conducted during 2011. Lopez uses straight-line amortization over the maximum allowable periods(20yrs). In addition, on July 1, 2011, Lopez incurred legal fees of $23,400 to defend the new patent that had been acquired for $60,000. Lopez's lawyers were successful in the defense of the patent.
Required:
Determine the amortization expense for intangibles for 2011. Lopez calculates amortization expense to the nearest month.
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