contestada

Dunder Mifflin Company incurred research and development costs of $100,000 and legal fees of $40,000 to acquire a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Dunder Mifflin record as Patent Amortization Expense in the first year?
a. 0
b. 3,000
c. 6,500
d. 13,000

Respuesta :

abiolataiwo2015

Answer:

b. $4,000

Explanation:

Calculation to determine What amount should Dunder Mifflin record as Patent Amortization Expense in the first year

Using this formula

Patent Amortization Expense =Legal fees to acquire a patent ÷ estimated useful life

Let plug in the formula

Patent Amortization Expense =$40,000/10 years

Patent Amortization Expense=$4,000

Therefore the amount that Dunder Mifflin should record as Patent Amortization Expense in the first year is $4,000

Otras preguntas