For Each of the Following Unrelated Transactions, (A) Determine the Amount

question 187

Essay

For each of the following unrelated transactions, (a) determine the amount of the amortization for the current year, and (b) present the adjusting entries required to record amortization at year end.
(1) Costs (it was not acquired) of $39,000 were incurred on January 1 to obtain a patent. On January 31, $38,610 was spent in legal costs to successfully defend the patent against competitors. The patent has an estimated legal life of 12 years.
(2) A company acquired a copyright for $160,000. The copyright has a useful life of 50 years.

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Definitions:

Unconscious

The part of the mind outside of conscious awareness.

Neo-Analytic

Refers to the modern re-interpretation and extension of Freudian psychoanalysis, focusing more on social and cultural aspects of personality development.

Psychodynamic Theorists

Professionals who study and apply theories that emphasize the influence of the unconscious mind and childhood experiences on behavior.

Alfred Adler

An Austrian medical doctor and psychotherapist who founded the school of individual psychology, emphasizing the uniqueness of the individual and the importance of societal factors in shaping personality.