During 2013, Sarasota Corporation spent $164,160 in research and development costs. As a result, a new product called the 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 $36,720 related to the patent were incurred as of October 1, 2013.

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

Date Account Titles and Explanation Debit Credit

2013 ____________________________________ _________________________ ___________________________

___________________________________ _______________________________ ________________________________

(To record research and development expenses)

2013_____________________________________ ______________________________ ________________________________

______________________________________ __________________________________ ____________________________________

(To record legal expenses)

2013_____________________________________ _______________________________________ __________________________________

______________________________________ __________________________________ _______________________________________

(To record amortization expense)

2014 ___________________________________ ___________________________________ __________________________________

_________________________________ ______________________________________ ______________________________________________

On June 1, 2015, Sarasota Spent $28,800 to successfully prosecute a patent infringement suit. As a result, the estimated of useful life was extended to 12 years from June 1 2015. Prepare all Journal entries required in 2015 and 2016.

Date Account Titles and Explanation Debit Credit

2015 ______________________________ _______________ ______________________

__________________________________ ____________________ ______________________

(To record patent)

2015 __________________________ ___________________________ ________________________________

______________________________ ___________________________ __________________________________

(To record amortization expense)

2016 ____________________________ ____________________________ _________________________________

____________________________________ _____________________________ ________________________________

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

Account Titles and Explanation Debit Credit

_____________________________ ___________________ ___________________

______________________________ ___________________ ____________________