Recharge Ltd. purchased a patent on January 1, 2020, for $ 1,120,000. At the time of...

Recharge Ltd. purchased a patent on January 1, 2020, for $ 1,120,000. At the time of the purchase, the patent had a remaining legal life of 20 years. In January 2023, Recharge spent $ 92,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 9 years. Recharge’s year end was December 31.

Required

1. Prepare the entries on the books of Recharge to record

a. The purchase of the patent,

b. The amortization for the first year (2020),

c. The defence of the patent, and

d. Amortization for 2023.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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