Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Duby Company in 2008.

1. Duby developed a new manufacturing process, incurring research and development costs of \($95,000.\) The company also purchased a patent for \($40,000.\) In early January, Duby capitalized \($135,000\) as the cost of the patents. Patent amortization expense of \($6,750\) was recorded based on a 20-year useful life.

2. On July 1, 2008, Duby purchased a small company and as a result acquired goodwill of \($80,000.\) Duby recorded a half-year’s amortization in 2008, based on a 50-year life (\($800\) amortization). The goodwill has an indefinite life.

Instructions 

Prepare all journal entries necessary to correct any errors made during 2008. Assume the books have not yet been closed for 2008.