Amortlzation 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 six years. b. A patent was acquired on a device designed by a production worker. Although the cost ofthe 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 15years and is currently worth $720,000. c. A franchise granting exclusive distribution rights for a new wind turbine within a three-state area for four years was obtained at a cost of $772,000. Satisfactory sales performance over the four yea rs permits renewal of the franchise for another four years {at an additional cost determined at renewal]. Generaljournal Ref. Description Debit Credit a. Amortization Expense - Patents at 126,000 at 0 v Patents 1/ 0 1/ 126,000 v To record patent amortization. b. Amortization Expense - Patents r 48,000 x 0 v' Patents 3 v 0 v 48,000 )1 To record patent amortization. c. Amortization Expense - Franchises 1/ 18,000 1/ 0 v Franchises v 0 at 18,000 v To record franchise amortization