Ayayai Corporation purchases a patent from Blossom Company on January $1,2025,$ for $$40,000.$ The patent has a remaining legal life

of $16$ years. Ayayai estimates the patent will have a useful life of $10$ years, based on expected product innovations in the market.

Assume that at January $1,2027,$ the carrying amount of the patent on Ayayai's books is $$32,000.$ In January, Ayayai spends $$20,000$

successfully defending a patent suit. Ayayai still feels the patent will be useful until the end of $2034.$

Prepare the journal entries to record the $$20,000$ expenditure and $2027$ amortization. $($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List

all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record expenditure of patents$)$

$($To record amortization expense$)$