On January 4, 2013, Franc Company purchased for $27,000 a patent that had been filed 8 years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2014, the company paid its lawyers $10,000 for successfully defending the patent in a lawsuit.

Prepare all the journal entries associated with the patent in 2013 and 2014. When required, round your answers to the nearest dollar.

Jan 4, 2013

Patent

Cash

Dec. 31

amortization expense ??

patent ??

Jan 3, 2014

?? ??

Cash ??

Dec 31

Amortization expense ??

Patent ??