A company amortizes a patent costing \$150,000 over 5 years. What is the journal entry for the annual amortization expense?

• A. Debit Amortization Expense \$30,000; Credit Patents \$30,000
• B. Debit Patents \$30,000; Credit Amortization Expense \$30,000
• C. Debit Patents \$150,000; Credit Amortization Expense \$150,000
• D. Debit Amortization Expense \$150,000; Credit Patents \$150,000

Answer: (A)