EXERCISE 12-10 - 12,400 Patent Amortization Expense....

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EXERCISE 12-10 (15–20 minutes) (a) 2007 Research and Development Expense. .. 170,000 Cash. ................................................ 170,000 Patents. ..................................................... 24,000 Cash. ................................................ 24,000 Patent Amortization Expense. ................ 600 Patents [($24,000 ÷ 10) X 3/12]. ..... 600 2008 Patent Amortization Expense. ................ 2,400 Patents ($24,000 ÷ 10). ................... 2,400
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EXERCISE 12-10 (Continued) (b) 2009 Patents. ............................................................. 12,400 Cash. .......................................................
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Unformatted text preview: 12,400 Patent Amortization Expense. ....................... 2,575 Patents ($1,000 + $1,575). ..................... 2,575 [Jan. 1June 1: ($24,000 10) X 5/12 = $1,000 June 1Dec. 31: ($24,000 $600 $2,400 $1,000 + $12,400) = $32,400; ($32,400 12) X 7/12 = $1,575] 2010 Patent Amortization Expense. ....................... 2,700 Patents ($32,400 12). ........................... 2,700 (c) 2011 and 2012 Patent Amortization Expense. ....................... 14,063 Patents ($28,125 2). ............................. 14,063 ($32,400 $1,575 $2,700) = $28,125...
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EXERCISE 12-10 - 12,400 Patent Amortization Expense....

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