Bramble Lane Outfitters Ltd. buys a patent on a pack-frame design for $60,000 cash. Record the purchase.

Answer

Dr Patent 60000; Cr Cash 60000

Accounts - Patent - Research Expense - Cash - Goodwill A purchased intangible is an asset at cost: **Patent** (debit) 60,000, **Cash** (credit). The trap is **Research Expense** — buying a finished patent is not research. Goodwill arises only when a whole business is bought.

Lyryx Intermediate FA Vol 1 §11.2–11.3, §11.6; Hermanson Vol 1 ch 11 (intangibles, goodwill — shapes adapted); Dauderis & Annand §8.7–8.8; verified-facts.md V9 (s.3064; the AcSB October 2025 exposure draft on goodwill amortisation, proposed effective 2029) (concept map K16–K18)