During 2013, Monty Corporation spent $156,960 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 $32,400 related to the patent were incurred as of October 1, 2013.

Prepare all journal entries required in 2013 and 2014 as a result of the transactions above.

On June 1, 2015, Monty spent $21,600 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.