Unlocking Success with Patents: Remington Corporation's Optimistic Path

How does Remington Corporation handle the purchase of a patent and its subsequent defense costs?

What are the journal entries made by Remington Corporation for the amortization of the patent in 2014 and 2016?

Remington Corporation's Patent Journey

Remington Corporation believes in the power of innovation and investing in patents to drive success. Let's explore how they navigate the acquisition and defense of patents.

Remington Corporation's positive outlook shines through their approach to handling patents. When they purchased a patent from Durler Company, they saw it as a valuable asset with a remaining legal life of 16 years. Despite facing a patent suit in 2016, they remained steadfast in their belief in the patent's usefulness until the end of 2013.

The journal entries made by Remington Corporation for the amortization of the patent showcase their financial acumen and strategic planning. In 2014, they recorded an annual amortization expense of $7,200, calculated as the cost of the patent divided by its useful life of 10 years. This disciplined approach continued in 2016, with the same amount of annual amortization recorded along with an additional entry for the patent defense costs of $20,000.

By capitalizing and amortizing the defense costs, Remington Corporation demonstrated their commitment to protecting their intellectual property for the long term. Their proactive stance towards patents exemplifies their optimism and determination to unlock success.