On January 1, Year 1, Lenus Corporation purchased a patent from Jarx Corporation by agreeing to make payments of $40,000 at the beginning of each year for the next seven years, starting January 1, Year 1. Lenus could borrow money from the bank at a rate of 6 percent per year. The patent has a life of 9 years.
Required:
Make the journal entries to record the following:
	A. The purchase of the patent and the first payment
	B. Interest expense at the end of Year 1
	C. Amortization expense on the patent at the end of Year 1
	D. The payment of the second payment on January 1, Year 2
	E. Interest expense at the end of Year 2
	F. Amortization expense on the patent at the end of Year 2