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Kingbird Limited purchased a patent for $81,600 on June 1, 2019. Kingbird has a calendar fiscal year end. Straight-line amortization is used for the patent, based on a five-year useful life, although the remaining legal life was 10 years. On May 31, 2021, Kingbird paid $24,000 in legal fees to successfully defend this patent in court and now wants to revise the estimate of the patents remaining useful life to 8 years, which is the same as its remaining legal life.

(a)

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Record the purchase of the patent on June 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
June 1, 2019

eTextbook and Media

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List of Accounts

Attempts: 2 of 3 used

(b)

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Record amortization expense for the fiscal years 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2019
Dec. 31, 2020

eTextbook and Media

List of Accounts

Attempts: 1 of 3 used

(c)

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• Correct Answer

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Record the payment of the legal fees on May 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
May 31, 2021

eTextbook and Media

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List of Accounts

Assistance Used

Attempts: 3 of 3 used

(d)

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Record any necessary amortization prior to the change in the useful life of the patent. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
May 31, 2021

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