On January 2, 20X4, Daintry Company purchased a patent for $380,000 from an inventor who had developed a new manufacturing process. At the time of the purchase, the patent had

On January 2, 20X4, Daintry Company purchased a patent for $380,000 from an inventor who had developed a new manufacturing process. At the time of the purchase, the patent had a remaining legal life of 12 years, but Daintry estimated the useful life to the company to be only 10 years. Required: 1. Prepare the journal entry to record Daintry’s purchase of the patent. 2. Prepare the journal entry to record amortization of the patent for 20X4, assuming that no contra account is used. 3. At the start of 20X7 , after amortization had been recorded for three years, Daintry concluded that the total useful life of the patent would be 7 years, rather than 10. Record Daintry’s amortization expense for 20X7.


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