On January 1,2014,Portwell Company Purchased a Patent for $200,000 B)

question 25

Multiple Choice

On January 1,2014,Portwell Company purchased a patent for $200,000.They estimate a useful life of 4 years.What entry is needed at the end of the first year?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Amortization expense-patents } & 50,000 & \\
• \hline \text { Patents } & & 50,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Amortization expense-patents } & 50,000 & \\
• \hline \text { Accumulated amortization } & & 50,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Patents } & 50,000 & \\
• \hline \text { Amortization expense-patents } & & 50,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Loss on patents } & 50,000 & \\
• \hline \text { Patents } & & 50,000 \\
• \hline
• \end{array}\]

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Definitions:

Entrepreneur

An individual who identifies a business opportunity and organizes, operates, and assumes the risk for a business venture, with the aim of making a profit.

Little Money

A term indicating a small amount of financial resources or capital.

Entrepreneurs

Individuals who start and manage businesses, taking on financial risks in the hope of profit, often introducing new or improved products or services.

Ability to Succeed

The possession of necessary skills, resources, or qualities that enable an individual or organization to achieve set goals or objectives.