D. PROBLEM 5: INTANGIBLE ASSETS (Patent) Objective: Determine the cost and amortization of an intangible asset On January 1, 2010, Empresas Alel paid Empresas ECO $ 20,000 for a patent to make waterproof wallets. ECO Company obtained the patent 7 years ago. The Alel Company estimates that it will be able to sell the waterproof wallets for the next 10 years. In the process, Alel incurred $5,000 in research and development costs. Required: 1. Determine the amortization expense that must be reported in the income statement for 2010 2. Record the corresponding journal entry.