The following transactions involving intangible assets of ABC Co. occurred during 2018.

1. On 1/1/2018, ABC's application for the patent (#2) for a new production process was granted. Legal and registration fees for the patent were $40,000. The production process will be useful to ABC for ten years.

2. On 1/1/2018 ABC finally won litigation against its patent #1 after spending $30,000 by the court judgment. The patent #1was purchased at $150,000 on 1/1/20015. The economic useful life of patent #1 is 30 years from its acquisition date.

3. On December 31, 2018, ABC purchased XYZ co. for $2,500,000. XYZ co.'s balance sheet as of December 31, 2018 was as follow; Book Value Fair market value Total assets $ 2,200,000 $3,000,000 Total liabilities (800,000) (900,000) Owners' equity (1,400,000) (2,100,000)

Instructions: Prepare the following journal entries for ABC

1) any necessary journal entries for each transaction on the date of transactions.

2) any journal entries to record any resultant amortization of intangible assets on Dec. 31, 2018. If no journal is needed, write no J/E