Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Dische Corporation in 2007. 1. Dische developed a new manufacturing process, incurring research and development costs of $150,000. The company also purchased a patent for $37,400. In early January Dische capitalized $187,400 as the cost of the patents. Patent amortization expense of $9,370 was recorded based on a 20-year useful life. 2. On July 1, 2007, Dische purchased a small company and as a result acquired goodwill of $60,000. Dische recorded a half-year’s amortization in 2007, based on a 40-year life

($750 amortization). The goodwill has an indefinite life.

Instructions Prepare all journal entries necessary to correct any errors made during 2007. Assume the books have not yet been closed for 2007.