Cost of a Patent

On January 4, 2013, Franc Company purchased for $27,000 a patent that had been filed 8 years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2014, the company paid its lawyers $10,000 for successfully defending the patent in a lawsuit.

Jan 4 2013	Patent	27000
	Cash		27000
Dec. 31	Amortization Expense	?
	Cash		?
Jan 3 2014	Patent	10000
	Cash		10000
Dec 31	Amortization Expense	?
	Patent		?