Milano Gallery purchases the copyright on a painting for $418,000 on January 1. The copyright is good for 10 more years. The company plans to sell prints for 11 years. Prepare entries to record the purchase of the copyright on January 1 and its annual amortization on December 31.

1. Record the purchase of the copyright on a painting for $418,000 cash

2. Record the year-end adjusting entry for the amortization expense of the copyright.