LRF Corporation purchased a patent for $450,000 on September 1, 2006. It had a useful life of 10 years. On January 1, 2008, LRF spent $110,000 to successfully defend the patent in a lawsuit. LRF feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2008?

$103,000
$100,000
$94,000
$78,000

My goodness! Six accounting questions from six different names -- but all on the same computer.

You might have a better chance of getting help if you post what you know about the answers.

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To calculate the patent amortization expense for 2008, we need to first determine the remaining carrying value of the patent and then allocate that value over the remaining useful life.

The carrying value of the patent can be calculated by subtracting the accumulated amortization from the original cost. In this case, the original cost of the patent is $450,000.

To determine the accumulated amortization, we need to know the annual amortization expense. The amortization expense is calculated by dividing the original cost by the useful life of the patent. In this case, the useful life is 10 years, so the annual amortization expense is $450,000 / 10 = $45,000.

Since the patent was acquired on September 1, 2006, and the question asks for the amortization expense for 2008, we need to consider the partial year. From September 1, 2006, to January 1, 2008, there is a total of 16 months.

To calculate the accumulated amortization as of January 1, 2008, we need to multiply the annual amortization expense by the number of full years and add the partial year.

Accumulated Amortization = (Annual Amortization Expense * Number of Full Years) + (Annual Amortization Expense * Remaining Partial Year)
Accumulated Amortization = ($45,000 * 1) + ($45,000 * 4/12)
Accumulated Amortization = $45,000 + $15,000
Accumulated Amortization = $60,000

The remaining carrying value of the patent as of January 1, 2008, is the original cost ($450,000) minus the accumulated amortization ($60,000).
Remaining Carrying Value = $450,000 - $60,000 = $390,000

Now that we have the remaining carrying value and the remaining useful life (5 years), we can calculate the amortization expense for 2008.
Amortization Expense for 2008 = Remaining Carrying Value / Remaining Useful Life
Amortization Expense for 2008 = $390,000 / 5
Amortization Expense for 2008 = $78,000

Therefore, the amount that should be reported for patent amortization expense for 2008 is $78,000.