Journal entry and amortization

Jazz Company purchased for$177,000

a patent for a new sound system. Although it gives legal protection for 20years,the patent is expected to provide the company with a competitive advantage for only six years.

After using the patent for twoyears,Poolz MusicCompany'sresearch director learns at a professional meeting thatWarner is designing a more powerful system. On the basis of this newinformation,Poolz Music Company determines that thepatent'stotal useful life is only four years. Record amortization for year 3.

Make journal entries to record:

(a)the purchase of the patent

(b)Record the amortization for year 1.

(c)Record amortization for year 3.