On January 3, 2005, Merris Company spent $89,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. At the beginning of 2009, the company spent $16,000 in successfully prosecuting an attempted infringement of the patent. At the beginning of 2010, the company purchased for $37,000 a patent that was expected to prolong the life of its original patent by five years. On July 1, 2013, a competitor obtained rights to a patent that made the company's patent obsolete.
Instructions:
Give all the entries that would be made relative to the patent for the period 2005-2013, including entries to record the purchase of the patent, annual patent amortization, and ultimate patent obsolescence. (Assume the company's accounting period is the calendar year.)