Question

On January 1, 2015, Weaver Corporation purchased a patent for $237,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2017, the company incurred legal fees of $57,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31.

1. Record the purchase in 2015; amortization in 2015; amortization in 2016; legal fees in 2017; and amortization in 2017.

2. What is the balance in the Patent account at the end of 2017?

Answer 1

The answer and procedures of the exercise are attached in an excel screenshot.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.