On January 2, 2019, Adelphi Company purchased a patent for $250,000 plus $10,000 in legal fees

Accounting Oct 06, 2020

On January 2, 2019, Adelphi Company purchased a patent for $250,000 plus $10,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 9 years after which time it will be worthless. How much is the annual amortization expense for 2019? Round to nearest whole dollar.

Expert Solution

Computation of the amortization expense for 2019:-

Amortization expense = Cost of patent / Useful life

= ($250,000 + $10,000) / 9

= $260,000 / 9

= $28,888.89 Or $28,889

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