or each of the following unrelated transactions, (1) Timber rights were purchased on a tract of land for $473,600. The timber is estimated at 1,280,000 board feet. During the current year, 77,000 board feet of timber were cut and sold. (2) Costs of $8,200 were incurred on January 1 to obtain a patent. Shortly thereafter, $26,000 was spent in legal costs to successfully defend the patent against competitors. The patent has an estimated legal life of 12 years.