Zahedan Printers $($ZP$)$ manufactures printers. Assume that ZP recently paid $$800$ comma $000$ for a patent on a new laser printer. Although it gives legal protection for $20$ years, the patent is expected to provide a competitive advantage for only eight years.

Requirement $1.$ Assuming the straight$-$line method of amortization, make journal entries to record $($a$)$ the purchase of the patent and $($b$)$ amortization for the first full year. $($Record debits first, then credits. Select the explanation on the last line of the joumal entry table.$)$

$($a$)$ Record the purchase of the patent.

Requirements

Assuming the straight$-$line method of amortzation, make journal entries to record $($a$)$ the purchase of the patent and $($b$)$ amortization for the first full year.

After using the patent for four years, ZP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, ZP decides, starting with Year $5,$ to amortze the remaining cost of the patent over two remaining years, giving the patent a total useful life of six years. Record amortization for Year $5.$