Quantum Technologies Company acquired patent rights on January 6, 20Y5, for $1,350,000. The patent has a useful life of 10 years. On January 7, 20Y8, Quantum Technologies successfully defended the patent in a lawsuit at a cost of $199,500.

a. Determine the patent amortization expense for the current year ended December 31, 20Y8. $

b. Illustrate the effects on the accounts and financial statements to recognize the amortization. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.

Statement of Cash Flows	Balance Sheet	Income Statement
Assets	=	Liabilities	+	Stockholders' Equity
SelectCashPatentsNo effectItem 2	+	SelectAccounts ReceivableAccumulated DepreciationNo effectItem 3	=	SelectAccounts PayablePatentsNo effectItem 4	+		SelectCapital StockRetained EarningsNo effectItem 5
Dec. 31.									Dec. 31.
Statement of Cash Flows		Income Statement
SelectFinancingInvestingOperatingNo effectItem 10			SelectAmortization expense - patentsSalesPatentsNo effectItem 12