Question

7. Oriole Corporation acquired a patent on May 1, 2017. Oriole paid cash of $93,000 to the seller. Legal fees of $2,600 were paid related to the acquisition. What amount should be debited to the patent account

Answer 1

Answer: $95,600

Step-by-step explanation:

Every expense that was directly related to the acquisition of the patent will be capitalized. This includes the actual amount paid as well as legal fees.

Amount to be debited;

= 93,000 + 2,600

= $95,600