accounting help 495064

600000 0 600000 Jennie April 23 Test Your Knowledge Student Name Course Name Student ID: Date: Requirements 1. Students please fill-in areas that are shaded Req. 1 DEBIT CREDIT Journal DATE ACCOUNTS AND EXPLANATIONS E9-24 Acquisition of patent, amortization, and change in useful life LO 5 [10-15 minutes] Miracle Printers (MP) manufactures printers. Assume that MP recently paid $600,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. 2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with year 5, to amortize the remaining cost of the patent over two remaining years, giving the patent a total useful life of six years. Record amortization for year 5. (a) Purchase of patent (b) Amortization for one year: Req. 2 Amortization for year 5: Calculate book value Orginal cost Accm Depreciation: Year 1 Year 2 Year 3 Year 4 Book value at beg of Yr 5 New estimated useful life remaining New annual amortization Accounting, 9e ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????