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In: AccountingThe time and cost required to manufacture its product R&Dcosts were $120,000. The process was...The time and cost required to manufacture its product R&Dcosts were $120,000. The process was patented. On July 1, 2016.Legal costs and fees to require the patent totaled $12,500. Browenestimated the useful life of the patent at 10 years.On July 1,2018, Browen sold the nonexclusive right to use thenew process to Kennedy Company for $90,000. Because Bowen retainedthe patent, the agreement allows Kennedy to use, but not sell, thenew technology for a period of 5 years. But Bowen Company andKennedy Company have December 31 fiscal years.On July 1, 2020, another competitor obtained a patent on a newprocess that made Browen's patent obsolete.1) How should Bowen Company account for the R&D costs andlegal costs incurred to obtain the patent? Show the effects ofthese entries using the financial statement effects template,prepare the appropriate journal entries necessary to account forthe costs incurred in 2016, and psot the entries to T-accounts