Milano Gallery purchases the copyright on an oil painting for $360,000 on January 1, 2017. The copyright legally protects its owner for 10 more years. The company plans to market and sell prints of the original for 19 years. Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.

• 1

  Record the purchase of the copyright on an oil painting for $360,000 cash.

• 2

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