Pharoah Corporation acquired a patent on May 1, 2017. Pharoah paid cash of $94000 to the seller. Legal fees of $2700 were paid related to the acquisition. What amount should be debited to the patent account

Question

Cohen Anderson

Business

24 January, 22:28

Pharoah Corporation acquired a patent on May 1, 2017. Pharoah paid cash of $94000 to the seller. Legal fees of $2700 were paid related to the acquisition. What amount should be debited to the patent account

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Answers (1)

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Maeve Mckenzie · Answer 1

Amount $96,700 should be debited to the patent account

Explanation:

In the above scenario, Pharoah paid cash of $94000 to the seller and $2700 were paid Legal fees for the acquisition.

The amount to be debited to the patent account = Cash paid by Pharoah Corporation for patent + Legal fees paid by Pharoah Corporation for patent

The amount to be debited to the patent account = $94000 + $2700

The amount to be debited to the patent account = $96,700