Question: In early January 2011, Lopez purchased a patent for $60,000 that was used exclusively for a single research project conducted during 2011. Lopez uses straight-line amortization over the maximum allowable periods(20yrs). In addition, on July 1, 2011, Lopez incurred legal fees of $23,400 to defend the new patent that had been acquired for $60,000. Lopez's lawyers were successful in the defense of the patent.
Required to do:
Determine the amortization expense for intangibles for 2011. Lopez calculates amortization expense to the nearest month.