Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: a. A patent with a 15-year remaining legal life was purchased for $756,000. The patent will be commercially exploitable for another seven years. b. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $88,200 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 18 years and is currently worth $720,000. C. A franchise granting exclusive distribution rights for a new wind turbine within a th area for four years was obtained at a cost of $68,800. Satisfactory sales performance over the four years permits renewal of the franchise for another four years (at an additional cost determined at renewal). General Journal Ref. Description Debit Credit Amortization Expense-Patents+ 108,000 Patents 108,000 To record patent amortization Amortization Expense - Patents 40,000 X Patents 40,000 X To record patent amortization Amortization Expense - Franchises 17,200 Franchises 17,200 To record franchise amortization Check