Paulsen Incurred $55,000 of Research and Experimental Expenses and Began

question 91

Essay

Paulsen incurred $55,000 of research and experimental expenses and began amortizing them over 60 months during June of year 1. During May of year 3, Paulsen received a patent based upon the research being amortized. $36,000 of legal expenses for the patent was incurred.
1) What is the basis of the patent, rounding amortization for each year to the nearest whole number?
2) What is the amortization expense with respect to the patent during the year it was issued, rounded to the nearest whole number?

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Definitions:

Irish Catholics

refers to members of the Catholic Church who are ethnically Irish, a group that historically faced discrimination and played significant roles in the cultural and political life of countries like the United States.

Monetary Policy

The process by which a central bank or monetary authority manages supply of money, often targeting inflation or interest rates to ensure economic stability and growth.

Republicans

Individuals affiliated with the Republican Party in the US, emphasizing limited government, individual freedom, and fiscal conservatism.

Populists

A political movement in the late 19th century United States, advocating for the interests of average people (often farmers) against the elites, leading to the creation of the Populist Party.