Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Buck Company in 200(->.

1. Buck developed a new manufacturing process, incurring research and development costs of

$95,000. The company also purchased a patent foi $27,000. In early January, Buck capitalized Sl22.ouu as the cost ot the patents. Patent amortization expense of $6. KM) was recorded based on a 20-year useful life.

2. On July 1. 2006, Buck purchased a small company and as a result acquired goodwill of

$80.()oo. Buck recorded a half-year's amortization in 2006, based on a 50-year life ($800 amortization). The goodwill has an indefinite life.

Instructions Prepare all journal entries necessarj to cone*

have not yet been closed loi 2006