1. Blue Co. purchased a patent on a communication process on January 1, 2016 for $140 million. The company initially amortized this patent over an expected useful life of 10 years. In 2019, the company determined that a more appropriate useful life for the patented technology would be a total of 5 years, as opposed to 10. What amortization expense would be recorded in 2019?
2. Aquatic Equipment Co. decided to switch from LIFO to FIFO at the beginning of 2019. The inventory reported at the end of 2015 using FIFO would have been $800,000 higher than the LIFO amount. The companys tax rate is 30%. Prepare the journal entry required on January 1, 2019 to recognize this change.
3. Assume that Income Tax Expense was $250,000, and that Income Taxes payable decreased by $14,000 and Deferred Tax Liability increased by $29,000. What amount of cash was paid for Income Taxes?