Answer:
$85,840
Step-by-step explanation:
Calculation for Blossom Corporation amount to be reported for patent amortization expense for 2021
First step is to calculate the amortization from 1 sept 2019 to January 1 2021 which is:
[($385,500 ÷ 10) × 1 +1/3]
=$38,550×1.3333333
= $51,400
Second step is to calculate for the remaining value before defence which is:
=$385,500-$51,400
=$334,100
The third step is to calculate for the cost of successful defence which is :
($334,100+ $95,100) ÷ 5
=$429,200÷5
= $85,840
Therefore the amount that should be reported for patent amortization expense for 2021 will be $85,840