Question

Cullumber Company incurred research and development costs of $101000 and legal fees of $41000 to acquire a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Cullumber record as Patent Amortization Expense in the first year

Answer 1

$14,200

Step-by-step explanation:

Step 1 Determine the Cost of the Patent

Research and Development costs $101000

Add legal fees $41000

Total $142,000

Step 2 Determine Amortization Expense

Amortization Expense = Cost/ Useful life

= $142,000/10 years

= $14,200