Pane records depreciation and amortization expense. Use the nearest whole month convention, and the double declining balance method for depreciation and the whole-year convention and the straight-line method for amortization. Note that all assets on the books at the beginning of the year are fully depreciated. Use the accumulated depreciation and accumulated amortization accounts. (See Transaction #1, #2, and #8).

8. On July 2, Pane pays cash for a patent that will allow it to produce a revolutionary new window for boats and other marine vehicles called "T-Panes".

Cost of Patent	$120,000
Estimated Economic Life (in years)	12

1. On January 5, Pane buys land and a building for one lump-sum of cash.

Contract price:	$590,000
Fair Value: Land	$400,000
Fair Value: Building	$200,000
Useful Life of Building (years)	20

2. On January 7, Pane purchases a machine to make stained glass windows. Pane pays cash for the machine. The machine has no residual value.

Contract Price:	$105,500
Transportation Costs:	$7,200
Installation Costs:	$4,956
Sales Tax on Contract Price:	10%
Useful Life of Machine (years)	6