During 2004, Wonder Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2004, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $18,000 related to the patent were incurred as of October 1, 2004.

Instructions
(a) Prepare all journal entries required in 2004 and 2005 as a result of the transactions above.
(b) On June 1, 2006, Wonder spent $9,480 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2006. Prepare all journal entries required in 2006 and 2007.
(c) In 2008, Wonder determined that a competitor’s product would make the New Age Piano obsolete and the patent worthless by December 31, 2009. Prepare all journal entries required in 2008 and 2009.