Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. recording amortization with a change in accounting

Recording Amortization with a Change in Accounting Estimate On January 1 of Year 1,...

70.2K

Verified Solution

Question

Accounting

Recording Amortization with a Change in Accounting Estimate
On January 1 of Year 1, Kelley Company purchased a new patent for $18,360 and started amortizing it over its legal life of 20 years. At the start of Year 4, Kelley re-examined the market for the patent and determined that the total useful life of the patent (from acquisition date) was 12 years.
Required
a. What should Kelley record as amortization expense on the patent for Year 4?
b. Record the entry for amortization in Year 4.
c. What is the carrying value of the patent on December 31 of Year 4?
Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
a. Amortization expense in Year 4: $
\table[[Date,Dr.,Cr.,],[b. Dec. 31, Year 4,Amortization Expense,0,0
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the relation between the Euclidean radius and the spherical radius of spherical circle. Include a picture.

Basic Math
Q

Discuss a) Genomic and complementary DNA (cDNA) libraries and b) The testing of pharmaceutical drugs.

Biology
Q

Which parameters control the dynamic behavior of sandy and clayey soils? State them separately for sand...

Civil Engineering
Q

Give a brief description of two psychological disorders that are common in your community. Justify the...

Psychology
Q

Mark which type of power does the parent best illustrate in the following scenario. A child...

General Management
Q

3 Points 3 Which event led to Emerson leaving the ministry O His travels to...

Biology
Q

Nat and Brett are standing due east of a 138 m tall tower Nat s...

Geometry
Q

A person starts walking from home and walks:4 miles East6 miles Southeast4 miles South3 miles...

Basic Math
Q

The Sendai Co., Ltd., of Japan has budgeted costs in its...

Accounting
Q

Ajax Corporation has two divisions. I he mining division makes toldine, which is then transterred...

Accounting
Q

Which of the following describes a difference between profit and total comprehensive income? Group of...

Accounting
Q

1. Suppose a firm, that has a WACC of 11.8%, has expected free cash flows...

Finance