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question celine dion corporation purchases a patent from salmon companyon january 1 4280726

Question

Celine Dion Corporation purchases a patent from Salmon Companyon January 1, 2014, for $52,770. The patent has a remaining legallife of 16 years. Celine Dion feels the patent will be useful for10 years. Assume that at January 1, 2016, the carrying amount ofthe patent on Celine Dion’s books is $42,216. In January, CelineDion spends $21,544 successfully defending a patent suit. CelineDion still feels the patent will be useful until the end of2023.

Prepare the journal entries to record the $21,544 expenditureand 2016 amortization.

Account Titles & Explanation

Debit

Credit

Patents

???

 

Cash

 

???

Amortization Expense

???

 

Patents

 

???

 

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