Amarista Corporation has the following selected transactions during the year ended December 31, 2018:

Jan. 1 Purchased a copyright for $120,000 cash. The copyright has a useful life of six years and a remaining legal life of 30 years.

Mar. 1 Acquired a franchise with a contract period of nine years for $540,000; the expiration date is March 1, 2027. Paid cash of $40,000 and borrowed the remainder from the bank.

Sept. 1 Purchased a trademark for $75,000 cash. As the purchase was being finalized, spent $35,000 cash in legal fees to successfully defend the trademark in court.

Instructions

(a) Prepare the entries to record the above transactions.

(b) Prepare the entries to record any amortization at December 31.