Chatton Wooler-Scots Chemical Located in Berwick-Upon-Tweed Created a New Chemical

Essay

Chatton Wooler-Scots Chemical located in Berwick-Upon-Tweed created a new chemical. Research and development costs were indistinguishable during its creation. The new chemical is called Chromoethylene, and it is used to increase the strength and UV resistance of plastics. Chatton Wooler-Scots uses the revaluation model of accounting for intangible assets. Chromoethylene was patented three years ago for 50 years. The new patent was originally valued at ₤4.5 billion and has increased in fair market value from ₤4.5 billion to ₤5 billion during the last year. Accumulated amortization is ₤270 million. Chatton Wooler-Scots uses the straight-line method of amortization. Prepare journal entries using the proportional restatement and eliminating amortization methods.