Company Corp. has purchased a machine. The following information pertains costs related to the purchase of this machine. Use the given Excel spreadsheet to prepare journal entries and move amounts to the general ledger. For this set of entries, it is only necessary to work up to the General Ledger (G.L.) tab. Submit only 1 Excel file per group.

1) On 1/1, company finishes developing a patent (patent 1). Company incurs $150,000 in costs to develop the patent. Legal and filing fees for the patent are $2,000. The legal and useful life of this patent is 10 years.

2) On 6/30, company purchases a patent (patent 2) for $600,000. The legal life of this patent is 10 years, but the useful life is expected to be 5 years.

3) On 12/31 the fair market value of the first patent is $200,000 and the fair market value of the second patent is $200,000. The total expected future cash flows for the first patent is $110,000 and the total future cash flow for the second patent is $300,000. Prepare the amortization and impairment entries as necessary.