E10-12 Part 1. Westmark Printing Co., which manufactures high-speed printers, has recently paid $1.37 million for a patent on a new laser printer. Although it gives legal protec- tion for 20 years, the patent is expected to provide Westmark with a competitive advantage for only 8 years. Assuming the straight-line method of amortization, make journal entries to record

(a) the purchase of the patent, and

(b) amortization for year 1. Part 2. Alter using the patent for 4 years, Westmark learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new informa- tion. Westmark decides, starting with year 5, to amortize the remaining cost of the patent over 2 remaining years, giving the patent a total useful life of 6 years. Record amortization for year 5.