Entry to record the amortization problem


A patent was purchased for $670,000 with a legal life of 20 years. Management estimates that the patent has an 8-year economic life. The entry to record amortization would include:

a) an increase in amortization expense for $33,500.

b) an increase in research and development expense for $670,000.

c) a decrease in patent for $83,750.

d) an increase in accumulated amortization for $670,000.

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Accounting Basics: Entry to record the amortization problem
Reference No:- TGS090750

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