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 $$31,000$

Goodwill $40,600$

Dynamo$$s financial condition just prior to the acquisition of these assets is shown in the following statements model.

Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders$$ Equity Revenue $$ Expenses $=$ Net Income Statement of Cash Flows

Cash $+$ Patent $+$ Goodwill

$93,800+$ NA $+$ NA $=$ NA $+93,800$ NA $$ NA $=$ NA NA

Required

Compute the annual amortization expense for these items.

Show the acquisition of the intangible assets and the related amortization expense for Year $1$ in a horizontal statements model.

Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year $1.$