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Questions -
Q1. Ivanhoe Company purchased a patent on January 1, 2017 for $580000. The patent had a remaining useful life of 10 years at that date. In January of 2018, Ivanhoe successfully defends the patent at a cost of $276000, extending the patent's life to 12/31/29. What amount of amortization expense would Ivanhoe record in 2018?
$85600
$58000
$71333
$66500
Q2. Sandhill Corp. acquires a patent from Maxi Co. in exchange for 3100 shares of Sandhill Corp.'s $5 par value common stock and $98000 cash. When the patent was initially issued to Maxi Co., Sandhill Corp.'s stock was selling at $8.30 per share. When Sandhill Corp. acquired the patent, its stock was selling for $9.80 a share. Sandhill Corp. should record the patent at what amount?
$98000
$113500
$123730
$128380
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