Venture Company acquired patent rights on January 3, 2005, for $661,500. The patent has a useful life equal to its legal life of 15 years. On January 5, 2008, Venture successfully defended the patent in a lawsuit at a cost of $105,000.
a. Determine the patent amortization expense for the current year ended December 31, 2008.
b. Journalize the adjusting entry to recognize the amortization.