Several Years Ago,Laurel Company Purchased a Patent and Has Since

question 69

Essay

Several years ago,Laurel Company purchased a patent and has since been amortizing it on a straight-line basis over its estimated useful life.The company's comparative balance sheets contain the following items:
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$$\begin{array} { l c c } \text { (In thousands) } & \text { December 31,2018 } & \text { December 31, 2017 } \\\text { Patent, less accumul ated amortization of } & \$ 280,000 & \$ 297,500 \\\$ 70,000 ( 2018 ) \text { and } \$ 52,500 ( 2017 ) & &\end{array}$$ A. How much amortization expense was recorded during 2018 ?

B. How is the amortization expense reported on the company's statement of cash flows?

C. How much was the original cost of the patent?

D. How many years has the patent been amortized?

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Definitions:

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Suprachiasmatic Nucleus

A small region of the brain in the hypothalamus responsible for controlling circadian rhythms.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep patterns.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, crucial for regulating vital bodily functions and the endocrine system by releasing various hormones.