On January 4, 2013, Franc Company purchased for $27,000 a patent that had been filed 8 years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2014, the company paid its lawyers $10,000 for successfully defending the patent in a lawsuit. Required:.
Prepare all the journal entries associated with the patent in 2019 and 2020

depreciation expense 2,514.28 debit

              patent                   2,514.28 credit

--to record 2019 amortizationon patent--

depreciation expense 2,514.28 debit

              patent                   2,514.28 credit

--to record 2020 amortization on patent--

Explanation:

On 2013 the patent is amortized:

27,000 / 15 = 1,800

On 2014 as the defend is successfull we capitalized into the atent account which now has 14 year of useful life:

27,000 - 1,800 + 10,000 = 35,200 balance at Dec 31th 2014

amorization per year:

35,200 / 14 = 2.514,2857

We will do the amortization at this rate until a new defense arise or the patent market vale decrease.

We aret givne with any additional information thus, we have to record for 2019 and 2020 the 2,514 depreciation

are you looking for a specific answer?