In: Accounting
Solution: Dr. Amortization expense $12,500 and Cr. Patent or Accumulated Amortization $12,500.
Working:
Particulars | Debit | Credit | |
Jan-01 | Patents | 180,000 | |
Cash | 180,000 | ||
(To record legal fees related to patent) | |||
Dec-31 | Amortization Expense (180,000 / 12 years) | 15,000 | |
Patents (or Accumulated Amortization) | 15,000 | ||
(To record amortization of patent) |
Nearest option selected