ergage cengageNoww2 I onlir 6 Merchandise inventory is cl × Amortization Entries

Question

ergage cengageNoww2 I onlir 6 Merchandise inventory is cl × Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $440,000. The patent has a u lide of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $22,000. If required, round your answer to the nearest dollar. a. Determine the patent amortization expense for the Year 4 ended December 31 b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. t>

Explanation / Answer

Per year patent amortization = (440000/8) = 55000

Accumlated amortization of three years = 55000*3 = 165000

Year 4 Patent amortization = (440000-165000+22000)/5 = 59400

Year 4 amortization expense = 59400

Date accounts & explanation debit credit Year 4 Amortization expense 59400     Accumlated amortization 59400

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