During 2016, Indigo Corporation spent $172,800 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, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $45,360 related to the patent were incurred as of October 1, 2016.

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 0 for the amounts.)

On June 1, 2018, Indigo 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 0 for the amounts.)

In 2020, Indigo determined that a competitors 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 0 for the amounts.)

If you could help me understand and finish what I have started, that would be excellent. Thank you in advance.

Debit Date Account Titles and Explanation Credit 2016 Research and Development Expense 172,800 Cash 172,800 (To record research and development expenses) 2016 Patents 45,360 Cash 45,360 (To record legal expenses) 2016 Amortization Expense 567 Patents 567 (To record amortization expense) 2017 Amortization Expense 2268 2268 Patents Date Account Titles and Explanation Debit Credit 2018 Patents 8,280 Cash 8,280 (To record patents) 2018 Amortization Expense 2067 Patents 2067 (To record amortization expense) 2019 3256 Patents 3256