Reporting a Patent Purchase

question 21

Essay

Reporting a patent purchase
Comox Corporation has a December 31 fiscal year end. Comox purchased a patent from Courtney Inc. for $ 400,000 on January 1, 2017. The patent expires on January 1, 2025. Comox has been amortizing it over its legal life. During 2020, Comox determined that the patent's economic benefits would not last longer than six years from the date of acquisition.
Instructions
Determine the amount that will be reported on
a) Comox's December 31, 2019 and 2020, statements of financial position.
b) Comox's 2020 income statement. Be specific about the account name and the account.