Patent Amortization Expenses
Not what you're looking for?
In early January 2011, Lopez purchased a patent for $60,000 that was used exclusively for a single research project conducted during 2011. Lopez uses straight-line amortization over the maximum allowable periods(20yrs). In addition, on July 1, 2011, Lopez incurred legal fees of $23,400 to defend the new patent that had been acquired for $60,000. Lopez's lawyers were successful in the defense of the patent.
Required:
Determine the amortization expense for intangibles for 2011. Lopez calculates amortization expense to the nearest month.
Purchase this Solution
Solution Summary
The solution explains how to calculate the amortization expense on the patent. The expense to the nearest month is determined.
Solution Preview
The amortization is to be done over a period of 20X12=240 months. The patent amount is $60,000
Amortization per month = 60,000/240 = $250 per month
For Jan 2011 to ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.