Answer:
depreciation expense 2,514.28 debit
patent 2,514.28 credit
--to record 2019 amortizationon patent--
depreciation expense 2,514.28 debit
patent 2,514.28 credit
--to record 2020 amortization on patent--
Explanation:
On 2013 the patent is amortized:
27,000 / 15 = 1,800
On 2014 as the defend is successfull we capitalized into the atent account which now has 14 year of useful life:
27,000 - 1,800 + 10,000 = 35,200 balance at Dec 31th 2014
amorization per year:
35,200 / 14 = 2.514,2857
We will do the amortization at this rate until a new defense arise or the patent market vale decrease.
We aret givne with any additional information thus, we have to record for 2019 and 2020 the 2,514 depreciation
