Valix Finacc vol 1 Problem 20-8

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-8

1.  Patent                                                                                             6,200,000

            Cash                                                                                                                6,200,000

2.  Legal expenses                                                                                  450,000

            Cash                                                                                                                   450,000

3.  Amortization of patent                                                                  1,050,000

            Patent                                                                                                             1,050,000

    X  (1,200,000 / 8)                                                                                                         150,000    

    Y  (2,000,000 / 5)                                                                                                          400,000

    Z  (3,000,000 / 6)                                                                                                          500,000                                                                                                                                  1,050,000