Question

Oriole Corporation acquired a patent on May 1, 2020. Oriole paid cash of $81000 to the seller. Legal fees of $1400 were paid related to the acquisition. What amount should be debited to the patent account

Answer 1

$82,400

Step-by-step explanation:

Calculation for What amount should be debited to the patent account

Using this formula

Patent account=Cash+Legal fees

Let plug in the formula

Patent account=$81,000+$1,400

Patent account=$82,400

Therefore the amount that should be debited to the patent account is $82,400