AMC Manufacturing Company Acquired a Patent for $20,000

question 45

Essay

AMC Manufacturing Company acquired a patent for $20,000. The patent was being amortized over 10 years. After being amortized for only 1 year, it was determined that the patent would only be useful for 3 more years. Prepare the journal entry to record the amortization expense for year 2.

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Definitions:

Personality

The relatively consistent blend of emotions, temperament, thought, and behavior that makes a person unique.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, social, and built contexts.

Self-evaluation

The process of examining and judging one's own actions and qualities.

Self-love

The regard for one's own well-being and happiness, often emphasizing the importance of caring for oneself.