During 2013, Blue Corporation spent $145,440 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, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $19,440 related to the patent were incurred as of October 1, 2013.

Research and Development Expense	145,440
Cash		145,440
Patents	19,440
Cash		19,440
Amortization Expense	486
Patents		486
Amortization Expense	1,944
Patents		1,944

On June 1, 2015, Blue spent $10,080 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016.

Patents	10,080
Cash		10,080
Amortization Expense
Patents
Amortization Expense
Patents

In 2017, Blue determined that a competitors product would make the New Age Piano obsolete and the patent worthless by December 31, 2018. Prepare all journal entries required in 2017 and 2018.

Amortization Expense	xx,xxx
Patents		xx,xxx