how-would-you-journalize-the-purchase-of-a-patent-for-200000

Question

How would you journalize the purchase of a patent for $200,000?

Accepted Answer

Debit Patents $200,000; Credit Cash $200,000

Answer

Debit Patents $200,000; Credit Amortization Expense $200,000

Answer

Debit Cash $200,000; Credit Patents $200,000

Answer

Debit Amortization Expense $200,000; Credit Patents $200,000

How would you journalize the purchase of a patent for \$200,000?