Prepare journal entries for 2016 for the following independent situations. Assume each organization has a December 31^st year end.

1. Keepers Inc. purchases a patent for $225,000 on January 1^st. Keepers estimates this patent to have a 5 year useful life.

2. Blue Bat Corporation purchases one of their main competitors on March 31. Blue Bat paid $160,000 for this purchase which included assets of $120,000 and liabilities of $10,000. The goodwill is believed to have an indefinite benefit.