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Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $376,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $19,000. If required, round your answer to the nearest dollar. a. Determine the patent amortization expense for the Year 4 ended December 31. $fill in the blank 78628a016fd203e_1 b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank.

Answer :

Answer:

Following are the responses to the given question:

Explanation:

For point a:

patent cost[tex]=376000[/tex]  

Start dividing by the useful life =8  

Amortization per year[tex]=47000[/tex]  

Amortization for 3 years=[tex]47000\times 3=141000[/tex]

3 Year end-of-year book value=[tex]376000-141000=235000[/tex]

The cost of a lawsuit has been added[tex]=19000[/tex]  

Year 4's book value[tex]=254000[/tex]  

Multiply by the useful life[tex]=5[/tex]

Year 4 patent amortization cost[tex]=50800[/tex]  

For point b:  

Amortization expense 50800  

         Patent                            50800

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