For the Following Transaction, (A) Determine the Amount of the Amortisation

Short Answer

For the following transaction, (a) determine the amount of the amortisation for the current year, and (b) present the adjusting entries required to record amortisation at year end.
(1) Costs of $1,000 were incurred on 1 January to obtain a patent. Shortly thereafter, $29,000 was spent in legal costs to successfully defend the patent against competitors. The patent has an estimated legal life of 12 years.