Amortization Journal Entries 1. Duncan Corporation purchases a patent from White Company on January 1, 2014, for $54,000. The patent has a remaining legal life of 16 years. Duncan feels the patent will be useful for 10 years. Prepare Duncan's journal entries to record the purchase of the patent and 2014 amortization. 2. Assume that at January 1, 2016, the carrying amount of the patent on Duncan's books is $43,200. In January, Duncan spends $24,000 successfully defending a patent suit. Duncan still feels the patent will be useful until the end of 2023. Prepare the journal entries to record the $24,000 expenditure and 2016 amortization. Impairment 3. Cindy Corporation owns a patent that has a carrying amount of $300,000. Cindy expects future net cash flows from this patent to total $210,000. The fair value of the patent is $110,000. Prepare Cindy's journal entry, if necessary, to record the loss on the impairment