Question: Accounting for an intangible asset On March 1, 2016, Twist Company purchased a patent for $168,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only five years.
Requirements: 1. Journalize the purchase of the patent.
2. Journalize the amortization expense for the year ended December 31, 2016. Assume straight-line amortization.