I: Vargo had an average of 135,000 shares of common stock outstanding. Vargo has no preferred stock.

j. Vargo obtained a patent on 3/1/16 for $96,000 with a legal life remaining of 14 years that was estimated to have a useful life of 12 years. The future cash flows from the patent are estimated to be $44,000 as of 12/31/22 and the fair value is estimated to be $37,000. Make any entries necessary for the patent during 2022.