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For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: a patent with a 10-year remaining legal life was purchased for $350,000. the patent will be commercially exploitable for another eight years. a patent was acquired on a device designed by a production worker. although the cost of the patent to date consisted of $52,300 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 10 years and is currently worth $400,000. a franchise granting exclusive distribution rights for a new solar water heater within a three-state area for five years was obtained at a cost of $70,000. satisfactory sales performance over the five years permits renewal of the franchise for another three years (at an additional cost determined at renewal).
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For each of the following unrelated situations, calculate the annual amortization expense and prepar...
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