?

Financial Accounting

Free Version

Upgrade subject to access all content

Moderate

P. Co. Amortization Expense for Patent

FINACT-NP77BB

A company purchased a patent on January 1, Year 7, for \$2,520,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years. On June 30, Year 8, the company paid legal costs of \$126,000 in successfully defending the patent in an infringement suit.

What is the amortization expense in Year 8 related to this Patent?