6 points.docx - (6 points During 2010 Salem Company spent $1,360,000 in research and development costs As a result of its R&D activities Salem patented

6 points.docx - (6 points During 2010 Salem Company spent...

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(6 points) During 2010, Salem Company spent $1,360,000 in research and development costs. As a result of its R&D activities, Salem patented a new product on September 30, 2010. On September 30, 2010, Salem incurred and paid $42,000 of legal costs related to its new patent. The patent had a five-year legal life. Salem only prepares adjusting journal entries once each year as of 12-31 (year-end). o Prepare the entries Salem made in 2010 related to the R&D activities and the patent. o Prepare the entries Salem made in 2011 and 2012 related to the patent. o On September 1, 2013, Salem spent $12,000 to defend its patent rights. Salem’s defense was successful, protecting the patent’s remaining legal life. Prepare the entries Salem made in 2013 related to the patent. (1 point)In 2015, Evan Company spent $250,000 for “goodwill visits” to its key customers. The purpose of the visits was to build on and enhance the solid working-relationship Evan already has with these customers. Prepare the entry Evan should make to reflect the $250,000 he spent.
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