On July 1, 20X1, Gamma Corporation acquired a trademark for $150,000 cash. The trademark has a useful life of 5 years. Using the straight-line method, calculate the amortization expense for the year 20X1.

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

• August 15: Paid $10,000 in legal fees related to the acquisition of the trademark.
• November 1: Purchased additional trademark rights for $30,000.

Required:

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