When Scranton Tools Bought Tipton Hardware, Included in the Purchase

question 127

Multiple Choice

When Scranton Tools bought Tipton Hardware, included in the purchase price was a patent valued at $26,000. The patent still has 10 years remaining of its legal life. However, it is estimated that the useful life of the patent is only 8 years. The journal entry to record the annual patent amortization expense would include a

• A) Debit to Amortization Expense, patent for $2,600
• B) Credit to Patent for $2,600
• C) Debit to Amortization Expense, patent for $3,250
• D) Debit to Patent for $3,250

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Definitions:

Cones

Photoreceptor cells in the retina that are responsible for color vision and functioning in well-lit conditions.

Rods

Photoreceptor cells in the retina of the eye that are responsible for vision at low light levels.

Night Vision

The ability to see in low light conditions, either naturally through biological adaptations or through the use of technological aids.

Fovea

A tiny pit located in the macula of the retina that is responsible for sharp central vision.