Amortization Expense

For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense:

1. A patent with a 10-year remaining legal life was purchased for $350,000. The patent will be commercially exploitable for another eight years.
2. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $52,300 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 10 years and is currently worth $400,000.
3. A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for five years was obtained at a cost of $70,000. Satisfactory sales performance over the five years permits renewal of the franchise for another three years (at an additional cost determined at renewal).