Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Inland Corporation.

1. Inland developed a new manufacturing process, incurring research and development costs of $160,000. The company also purchased a patent for $40,000. In early January, Inland capitalized $200,000 as the cost of the patents. Patent amortization expense of $10,000 was recorded based on a 20-year useful life.

2. On July 1, 2017, Inland purchased a small company and as a result recorded goodwill of $80,000. Inland recorded a half-year’s amortization in 2017, based on a 20-year life

($2,000 amortization). The goodwill has an indefinite life.

Instructions Prepare all journal entries necessary to correct any errors made during 2017. Assume the books have not yet been closed for 2017.