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New Tech Company Acquired a Patent on January 1,2015 for $35,000.The

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New Tech Company acquired a patent on January 1,2015 for $35,000.The residual value of the patent is $0.The patent is expected to be of benefit to New Tech Company for 5 years.After using the patent one year,it was discovered that the patent would only be useful for 3 more years.
Required:
1.Prepare the journal entry to record the acquisition of the patent.Omit explanation.
2.Prepare the adjusting journal entry at December 31,2015.Omit explanation.
3.Prepare the adjusting journal entry at December 31,2016.Omit explanation.


Definitions:

Variable Costs

Costs that vary in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not change with the amount of goods or services produced over a short period.

Variable Costs

Costs that vary directly with the level of production or service provision.

Fixed Costs

Expenses that do not change with the level of goods or services produced over a short time.

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