Journalize these transactions: Antex Co. issues 80,000 shares of common stock (par of $2) to acquire...

Journalize these transactions:

Antex Co. issues 80,000 shares of common stock (par of $2) to acquire a patent. An independent appraiser determines that the value of patent is $320,000. The patent has a legal life 15yrs remaining and the co. assigns it a useful life of 10yrs, no residual value. After 2 years, an unexpected technological development leads to the determination of a recoverable amount of the patent of $198,000

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Note : Amortisation has been taken based on useful life of 10 years(320000/10)=$32,000 per year

ekkarill92 answered 1 year ago

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