Day Company purchased a patent on January 1, 2010 for $360,000. The patent had a remaining useful life of 10 year at that date.

Day Company purchased a patent on January 1, 2010 for $360,000. The patent had a remaining useful life of 10 year at that date. In January of 2011, Day successfully defends the patent at a cost of $162,000, extending the patent’s life to 12/31/22. What is the amount of amortization expense would Day record in 2011?

SOLUTION:Amortization Expense = Carrying Value / Useful LifeAmortization Expense for 2010 = $360,000 / 10 yearsAmortization Expense $36,000.00 Carrying Value of Patent during 2011 = Purchase...