Downs Company purchases a patent for $156,000 on January 2, 2014. Its estimated useful life is 6 years. (a) Prepare the journal entry to record amortization expense for the first year. (b) Show how this patent is reported on the balance sheet at the end of the first year. These are selected 2014 transactions for Amarista Corporation: Jan. 1 Purchased a copyright for $120,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $54,000. Sept. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. Instructions Prepare all adjusting entries at December 31 to record amortization required by the events. Presented here are selected transactions for Pine Company for 2014. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2011. The computer cost $30,000 and had a useful life of 5 years with no salvage value. The computer was sold for $12,000. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2009. The truck cost $33, 400 and was depreciated based on an 8-year useful life with a $3,000 salvage value. Instructions Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Pine Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2013.)