Murphy Printers incurred external costs of $700,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Murphy with a competitive advantage for only seven years due to expected technological advances in the industry. Murphy uses the straight-line method of amortization (Click the icon to view additional information.) Read the requirements Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording (a) the purchase of the patent. Journal Entry Date Accounts Debit Credit More Info Record (b) the amortization of the patent for year 1. Journal Entry Date Accounts Debit Credit After using the patent for four years, Murphy learned at an industry trade show that Fast Printers has patented a more efficient printer and will be selling this printer next quarter. Because of this new information, Murphy determined that the expected future cash flows from its patent were now only $220,000. The fair value of Murphy's patent on the open market was now zero. Print Done