On January 4, 2019, Franc Company purchased for $27,000 a patent that had been filed 8 years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2020, the company paid its lawyers $10,000 for successfully defending the patent in a lawsuit.

Required:
Prepare all the journal entries associated with the patent in 2019 and 2020. (Round all calculations to the nearest dollar.)