Advance Inc. purchased a patent on June 1 of Year 1 for $100,000 with an estimated useful life of 10 years. In January of Year 2, Advance Inc. incurred $10,000 in legal fees to successfully defend the patent. In Year 3, Advance Inc. revised the estimated useful life of the patent to a total of 12 years. Note: Round all of your answers below to the nearest whole dollar. a. Record the entry for amortization expense in Year 3. First compute the carrying value of the patent on the following dates: December 31, Year 1: $Answer December 31, Year 2: $Answer Next, record amortization expense for Year 3.

Date	Account	Dr.	Cr.
Dec. 31, Year 3	Amortization ExpenseCashImpairment LossPatentResearch and Development ExpenseN/A
	Amortization ExpenseCashImpairment LossPatentResearch and Development ExpenseN/A
	To record amortization expense on patent

b. Determine the carrying value of the patent on December 31 of Year 3. $Answer