On August 1, 20X1, Sigma Corporation acquired a copyright for $120,000 cash. The copyright has a useful life of 5 years. Using the straight-line method, calculate the amortization expense for the year 20X1.

Additionally, Sigma Corporation made the following transactions during 20X1:

• September 15: Paid $10,000 for legal fees related to the acquisition of the copyright.
• November 1: Purchased additional copyrighted material for $25,000.

Required:

• Calculate the total amortization expense for the year 20X1 for the copyright.
• Prepare the journal entries to record the copyright-related transactions for Sigma Corporation during the year 20X1.