Pronghorn Corporation purchases a patent from Larkspur Inc. on July $1,2017,$ for $$267,000.$ The patent has a remaining legal life of $9$ years. Pronghorn estimates the patent will have a useful life of $4$ years, based on expected product innovations in the market.

Prepare Pronghorn's journal entries to record the purchase of the patent and $2017$ amortization. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$267000$

$($To record purchase of patents$)$

$$

$$

$$

$$

$$

$($To record amortization of patents$)$