What is the total cost of the patent

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Reference no: EM13983204

Problem Intangible Assets.

Process on excel spread sheet Bates Company acquired patent rights on Jan 1, 2010 for $1,125,000. This has an estimated useful life of 10 years and incurred legal fees of $100,000. On January 1, 2012, the company successfully defended against a lawsuit in the amount of $100,000. The company had a total of R&D expenditures related to the patent of $300,000.

Based on the information above:

A. What is the total cost of the patent and the amount of amortization expense for the year ending 2010?

B. At December 31 of 2012 what would be the total amount of amortization expense recorded for the year?

Be sure your submission also shows how you calculated and reached the final total for each of the above questions. And all references used.

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The said paper consists of amortization of patent under different conditions and situation as provided. Here the appropriate application of amortization policy is used. The same has been done in MS Excel.

Reference no: EM13983204

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