Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2011, the company expends $322,470 on a research project, but by the end of 2011 it is impossible to determine whether any benefit will be derived from it.
The project is completed in 2012, and a successful patent is obtained. The R&D costs to complete the project are $125,910. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2012 total $39,900. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization in 2012. show accounts titles and explinations, record journal entries to recoed research and development, legal and adminstrative costs.