Question

MicroSystems Inc. acquired a patent for $180,000. MicroSystems amortizes the patent on a straight-line basis over its remaining economic life of 12 years. Required: Prepare the journal entry to record the amortization expense related to the patent. Dec. 31 Amortization Expense Patent 180,000 (Record amortization of patent) Feedback Patents are amortized over the shorter of eithe

Answer 1

The answer is given below;

Step-by-step explanation:

$180,000/12=$15,000

Amortization Expense Dr.$15,000

Patent Cr.$15,000

In absence of useful life of patent,we have used economic life of patent for sake of patent amortization.