WHAT IS THE JOURNAL ENTRY TO RECORD amortization of patents? THE ANSWER IS NOT $

Question

WHAT IS THE JOURNAL ENTRY TO RECORD amortization of patents? THE ANSWER IS NOT $13690.

Problem 9-5A (Part Level Submission) The intangible assets section of Flounder Corporation's balance sheet at December 31, 2017, is presented here. Patents($76,900 cost less $6,800 amortization) Copyrights($48,000 cost less $33,100 amortization) 14.900 Total $70,100 $85,000 The patent was acquired in January 2017 and has a useful life of 10 years. The copyright was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018. Jan. 2 Paid $54,000 legal costs to successfully defend the patent against infringement by another company. JanJune Developed a new product, Incurring $243,500 In research and development costs. A patent was granted for the product on July 1, and its useful life Is equal to its legal life. Legal Sept. 1 Paid $50,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October Oct. 1 Acquired a copyright for $249,000. The copyright has a useful life and legal life of 50 years and other costs for the patent were $30,000

Explanation / Answer

Amotization expense of patents = (76900/10)+(54000/9)+(30000/20/2)= 14440 Amortization expense 14440          Patents 14440

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