Consider each event concerning intangible assets independently:
a.Moonlit Corporation purchased a patent for $476,000 on January 1,20X3.The company paid cash.The patent has a remaining legal life of 14 years.Due to anticipated technological change,it is expected that the patent will be useless in 5 years.
b.In 20X3,Beaumont Company spent $3,500,000 cash in research and development costs.However,the research did not result in a patent.Beaumont Company acquired a patent from another company for $1,000,000 on January 1,20X3.The company paid cash.The acquired patent is expected to last 8 years.
Prepare all journal entries necessitated by events in a.and b.above during the year 20X3.

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The Answer of Consider each event concerning intangible assets independently:
a.Moonlit Corporation purchased a patent for $476,000 on January 1,20X3.The company paid cash.The patent has a remaining legal life of 14 years.Due to anticipated technological change,it is expected that the patent will be useless in 5 years.
b.In 20X3,Beaumont Company spent $3,500,000 cash in research and development costs.However,the research did not result in a patent.Beaumont Company acquired a patent from another company for $1,000,000 on January 1,20X3.The company paid cash.The acquired patent is expected to last 8 years.
Prepare all journal entries necessitated by events in a.and b.above during the year 20X3.

Consider Each Event Concerning Intangible Assets Independently