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During 2016, Blue Corporation spent $145,440 in research and development costs. As a result, a new product called the New Age Plano was patented. The

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During 2016, Blue Corporation spent $145,440 in research and development costs. As a result, a new product called the New Age Plano was patented. The patent was obtained on October 1, 2016, 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, 2016. Your answer is partially correct. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (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 for the amounts.) Date Account Titles and Explanation Debit Credit 2016 Research and Development Expense 145440 Cash 145440 (To record research and development expenses) 2016 Patents 19440 Cash 19440 (To record legal expenses) 2016 Amortization Expense 1944 Patents 1944 (To record amortization expense) 2017 Amortization Expense 17496 Patents 17496 eTextbook and Media Assistance Used e Textbook 1 e Textbook 2 e Textbook 3 I List of Accounts Your answer is correct. On June 1, 2018, Blue spent $8,280 to successfully prosecute a patent Infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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 for the amounts.) Date Account Titles and Explanation Debit Credit 2018 Patents 8280 Cash 8280 Your answer is partially correct. In 2020, Blue determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (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 for the amounts.) Account Titles and Explanation Debit Credit Amortization Expense Patents eTextbook and Media Assistance Used e Textbook 1 e Textbook 2 e Textbook 3

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