Davis Research Company engaged in the following five transactions during 2016:

1. Purchased a patent for $35,000. Legal costs of $5000 werre also incurred

2. Cost paid to improve patent

- Engineering costs $20,000

- Assembling and testing prototypes $10,000

- Other R and d costs $25,000

3. Licensed a manufacturing process to another company and received $80,000 as and advance payement

4. Successfully defended a patent infringement suit at a cost of $12,000

5. Earned $5,000 of the advance payment on the licensed manufacturing proces in item 4.

Prepare journal entries to record the preceding transactions