During $2021,$ Novak Corporation spent $$158,400$ in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October $1,2021,$ and had a legal life of $20$ years and a useful life of $10$ years. Legal costs of $$18,000$ related to the patent were incurred as of October $1,2021.$

$($a$)$

$($b$).$

Your answer is correct.

On June $1,2023,$ Novak spent $$9,480$ to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to $12$ years from June $1,2023.$ Prepare all journal entries required in $2023$ and $2024.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries. Record entries in the order displayed in the problem statement$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record cost of infringement suit$)$

Am

$($To record amortization expense$)$

In $2025,$ Novak determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December $31,2026.$ Prepare all journal entries required in $2025$ and $2026.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit