Change in Estimate$-$Patent

Advance Inc. purchased a patent on June $1$ of Year $1$ for $$50,000$ with an estimated useful life of $10$ years. In January of Year $2,$ Advance Inc. incurred $$5,000$ in legal fees to successfully defend the

patent. In Year $3,$ Advance Inc. revised the estimated useful life of the patent to a total of $12$ years.

Note: Round all of your answers below to the nearest whole dollar.

a$.$ Record the entry for amortization expense in Year $3.$

First compute the carrying value of the patent on the following dates:

December $31,$ Year $1$: $$

December $31,$ Year $2$: $

Next, record amortization expense for Year $3.$

b$.$ Determine the carrying value of the patent on December $31$ of Year $3.$

$