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Exercise 266 a-c Following are independent situations. Your answer is partially correct. Try again. A company purchased a patent on January 1, 2021, for $2,500,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2021, the company paid legal costs of $135,000 in successfully defending the patent in an infringement suit. Prepare the journal entry to amortize the patent at year end on December 31, 2021. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit December 31, 2021 Amortization Expense Patents (To record patent amortization) x Your answer is incorrect. Try again. Trent Company purchased a franchise from Tastee Food Company for $400,000 on January 1, 2021. The franchise is for an indefinite time period and gives Trent Company the exclusive rights to sell Tastee Wings in a particular territory. Prepare the journal entry to record the acquisition of the franchise and any necessary adjusting entry at year end on December 31, 2021. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit IL x Your answer is incorrect. Try again. Kline Company incurred research and development costs of $500,000 in 2021 in developing a new product. Prepare the necessary journal entries during 2021 to record these events and any adjustments at year end on December 31, 2021. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record research and development expense for the current year) Click if you would like to Show Work for this question: Open Show Work