View Policies Show Attempt History Current Attempt in Progress a During 2016, Blue Corporation spent $177.120 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $49,680 related to the patent were incurred as of October 1, 2016. (a) Your answer is correct. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (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) Date Account Tities and Explanation Debit Credit 2016 Research and Development Expense 177120 Cash 177120 (To record research and development expenses) 2016 Patents 49680 Cash 49680 (To record legal expenses) I. 2016 Amortization Expense 1242 Patents 1242 To record amortization Pyrense) (b) Your answer is correct. On June 1, 2018, Blue spent $11,880 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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 for the amounts.) Date Account Titles and Explanation Debit Credit 2018 Patents 11880 Cash 11880 (To record patents) 2018 Amortization Expense 4660 Patents 4660 (To record amortization expense) 1.0 U ! 2019 Amortization Expense 4440 Patents 4440 Tou c (c) Your answer is partially correct. In 2020, Blue determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2021. Prepare all journal entries required in 2020 and 2021. (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 for the amounts) Account Titles and Explanation Debit Credit Amortization Expense 35,300 Patents 35,300