Jasper Inc. acquired three patents in January 20x4. The patents have different lives, as indicated...
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Jasper Inc. acquired three patents in January 20x4. The patents have different lives, as indicated in the following schedule:
Cost
Estimated useful life Remaining legal life
Patent A $15,500 10 years 17 years
Patent B 31,250 6 years 7 years
Patent C 65,620 Indefinite 17 years
Patent C is believed to be uniquely useful as long as the company retains the right to use it. In June 20x5, the company unsuccessfully attempted to defend its right to Patent B. Legal fees of $12,700 were incurred in this action. The company year end is December 31.
Required -
Determine the amount of amortization/impairment that should be recognized for 20x4, 20x5, and 20x6.
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