Answer:
Explanation:
The journal entries are shown below:
1. Patent A/c Dr $40,000
To Cash A/c $40,000
(Being patent is purchase in cash is recorded)
2. Amortization expense A/c Dr $4,000
To Patent A/c $4,000
(Being amortization expense is recorded)
The computation is shown below:
= Patent ÷ useful life
= $40,000 ÷ 10 years
= $4,000
