Part 1. Millennium Printing manufactures high- speed printers. Millennium printing recently paid $ 1 million 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 8 years. Using the straight-line method of amortization, make journal entries to record

(a) The purchase of the patent and

(b) Amortization for year 1.

Part 2. After using the patent for 4 years, Millennium Printing learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, Millennium Printing decides, starting with year 5, to amortize the remaining cost of the patent over 2 remaining years, giving the patent a total useful life of 6 years. Record amortization for year 5.