Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Inland Corporation.

1. Inland developed a new manufacturing process, incurring research and development costs of \(\$ 160,000\). The company also purchased a patent for \(\$ 40,000\). In early January, Inland capitalized \(\$ 200,000\) as the cost of the patents. Patent amortization expense of \(\$ 10,000\) was recorded based on a 20 -year useful life.

2. On July 1, 2025, Inland purchased a small company and as a result recorded goodwill of \(\$ 80,000\). Inland recorded a half-year's amortization in 2025 , based on a 20 -year life ( \(\$ 2,000\) amortization). The goodwill has an indefinite life.

Instructions

Prepare all journal entries necessary to correct any errors made during 2025. Assume the books have not yet been closed for 2025 .