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Problem 1: Andy Ltd acquired a patent for $20,000 on 31 September 2015. The patent is for a period of 20 years and it is estimated that its useful life will be 10 years. What journal entry is required on 31 December 2015, the end of Andy Ltd's financial year?
Select one:
a. Dr Amortisation Expense-patent $500, Credit Accumulated Amortisation-patent $500.b. Dr Amortisation Expense-patent $250, Credit Accumulated Amortisation-patent $250.c. Dr Amortisation Expense-patent $1,000, Credit Accumulated Amortisation-patent $1,000.d. Dr Amortisation Expense-patent $2,000, Credit Accumulated Amortisation-patent $2,000.
Financial Statement Analysis and Preparation
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