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Required information [The following information applies to the questions displayed below.] On January 1, 2021, Weaver...
Required information
[The following information applies to the questions displayed below.]
On January 1, 2021, Weaver Corporation purchased a patent for $255,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2023, the company incurred legal fees of $75,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Weaver Corporation’s year-end is December 31.
Required:
1. Record the purchase in 2021; amortization in 2021; amortization in 2022; legal fees in 2023; and amortization in 2023. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
2. What is the balance in the Patent account at the end of 2023?
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