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Venture Company acquired patent rights on January 3, 2005, for$661,500. The patent has a useful life equal to its legal lifeof 15 years. On January 5, 2008, Venture successfully defendedthe patent in a lawsuit at a cost of $105,000.
1. Determine the patent amortization expense for the current year ended December 31, 2008. 2. Journalize the adjusting entry to recognize the amortization.
Discuss in at least two WELL-DEVELOPED paragraphs your ORIGINAL personal insights about understanding the importance of the cost drivers and the types of cost behavior that influence managerial decision making.
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