Question

Help please

Martinez, Inc. acquired a patent on January 1, 2016 for $40,300 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2017, before any adjustments were recorded for the year, management determined that the remaining useful life was 7 years (with that new estimate being effective as of January 1, 2017). On June 30, 2018, the patent was sold for $25,300. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.)

Prepare the journal entry to record the acquisition of the patent on January 1, 2016.

C. Compute the amount of amortization that would be recorded in 2017. (Round your final answer to the nearest whole dollar.)

D. Determine the gain (loss) on sale on June 30, 2018. (Round your intermediate calculations and final answer to the nearest whole dollar.)

Help please

Martinez, Inc. acquired a patent on January 1, 2016 for $40,300 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2017, before any adjustments were recorded for the year, management determined that the remaining useful life was 7 years (with that new estimate being effective as of January 1, 2017). On June 30, 2018, the patent was sold for $25,300. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.)

 

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