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Monday, November 15, 2010

Valix Finacc vol 1 Problem 20-4



Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-4

2008     Research and development expense                         510,000
                        Cash                                                                                                    510,000

2011     Patent                                                                                     720,000                                     Cash                                                                                                   720,000
                                                                                                    
Amortization of patent (720,000 / 16)                           45,000
                        Patent                                                                                                   45,000

2012     Patent                                                                                     540,000
                        Cash                                                                                                    540,000

            Amortization of patent                                                             81,000
                        Patent                                                                                                   81,000

            On related patent                                                                                             45,000
            On competing patent (540,000 / 15)                                                                 36,000
                                                                                                                                      81,000

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