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Question - Accounting for a Change in Accounting Estimate- Patent - Mills Inc. purchased a patent in January of 2015 for $72,000 and chose to amortize the patent over its useful life of 20 years. However, in 2020, the company decided that the total useful life of the patent would only be 10 years based upon new technology advancing in the company's internal research and development department.
a. What entry would the company record for amortization of the patent in 2020?
b. What impact would this change have on prior periods?
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