On June 30,2011, Mobley Corporation acquired a patent for $4millon. The patent was estimated to have an eight-year life and no residual value. Mobley uses the straight -line method of amortization for intangible assets. At the beginning of January 2013, Mobley successfully defended its patent against infringement. Litigation costs totaled $650,000.

Required:

1.Calculate patent amortization for 2011 and 2012

2. Prepare the journal entry to record the 2013 litigation costs.

3.Calculate amortization for 2013.