Van Frank Telecommunications has a patent on a cellular
transmission process. The company has amortized the $27.00 million
cost of the patent on a straight-line basis since it was acquired
at the beginning of 2014. Due to rapid technological advances in
the industry, management decided that the patent would benefit the
company over a total of six years rather than the nine-year life
being used to amortize its cost. The decision was made at the end
of 2018 (before adjusting and closing entries).
What is the appropriate adjusting entry for patent amortization in 2018 to reflect the revised estimate?
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