Patton rights were acquired on January 2, 2002 for $855,000. The remaining legal life is 15 years and the estimated economic life is 12 years. On January 6, 2004, the company successfully defeated the patent in a lawsuit at a cost of $32,000.

A) illustrate the effects on the financial statements of the patent amortization for the year and December 31, 2002

b) illustrate the effects on the financial statement of a legal cost incurred on January 6, 2004

c) illustrate the effect on the financial statement of the patent amortization for the year and December 31, 2004