Greanleaf Company acquired patent rights on January 4, 2012, for $300,000. The patent has a useful life equal to its legal life of 12 years. On January 7, 2015, Greanleaf success fully defended the patent in a lawsuit at a cost of $72,000.
a. Determine the patent amortization expense for the current year ended December 31, 2015.
b. Journalize the adjusting entry to recognize the amortization.