Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items:

Patent with $4$ remaining years of legal life

Goodwill

$$38,000$

$37,000$

Dynamo's financial condition just prior to the acquisition of these assets is shown in Required $B.$

Required

a$.$ Compute the annual amortization expense for these items.

b$.$ Record the acquisition of the intangible assets and the related amortization expense for year $1$ in a horizontal statements model.