Maris Corporation acquired a patent on May 1, 2008. Maris paid cash of $25,000 to the seller. Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account?

Question

Maris Corporation acquired a patent on May 1, 2008. Maris paid cash of $25,000 to the seller. Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account?

$1,000
$24,000
$25,000
$26,000

Answer 1

To determine the amount that should be debited to the patent account, we need to consider the total cost of acquiring the patent. In this case, Maris Corporation paid $25,000 in cash to the seller and incurred legal fees of $1,000 related to the acquisition.

To calculate the amount to be debited to the patent account, we add the cash paid to the seller and the legal fees:

$25,000 (cash paid to the seller) + $1,000 (legal fees) = $26,000

Therefore, the correct answer is $26,000, which should be debited to the patent account.

Maris Corporation acquired a patent on May 1, 2008. Maris paid cash of $25,000 to the seller. Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account?

26000

To determine the amount that should be debited to the patent account, we need to consider the total cost of acquiring the patent. In this case, Maris Corporation paid $25,000 in cash to the seller and incurred legal fees of $1,000 related to the acquisition.