On January 2, 2011, David Corporation purchased a patent for $500,000. The remaining legal life is 12

Question:

On January 2, 2011, David purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2013, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life.

Required:
Prepare journal entries related to the patent for 2011, 2012, and 2013.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...