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At the beginning of Year One, Jaguar Corporation purchased a license from Angel Corporation that gives...

  1. At the beginning of Year One, Jaguar Corporation purchased a license from Angel Corporation that gives Jaguar the legal right to use a process Angel developed. The purchase price of the license was $1,500,000, including legal fees. According to the agreement, Jaguar will be able to use the process for five years.
    1. Record Jaguar’s purchase of the license.

    1. Record amortization of the license at the end of Year One.
  2. During Year One, Neymar Corp. a manufacturer of salon products begins work on developing a new product within their existing line which they hope to patent. During the year, $65,000 is spent on research and development. Neymar Corp. receives a patent which cost the company $10,000 in legal fees to secure.
    1. What would the journal entry be for this transaction?
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