Record amortization expense

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Question - Intellectual Enterprises bought a patent on April 1, 2020. The following information pertains to the patent on the date of purchase.

Purchase price $12,000

Remaining useful life 8 years

Remaining legal life 24 years

Assume that Intellectual Enterprises has a December 31 year end.

Required -

1. Calculate amortization expense for the 2020 year.

2. On January 1, 2021, Intellectual Enterprises pays $3,500 to protect its rights. Record the legal fees and amortization of the patent for the 2021 year.

3. On January 1, 2022, management determines that the patent has a remaining useful life of 3 years. Record amortization expense for 2022.

Reference no: EM132974839

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