Use the information in BE12-13 and assume that in January 2016, Latupatula spends $26,000 successfully defending a patent suit. In addition, Latupatula now feels the patent will be useful only for another seven years. Prepare the journal entries to record the 2016 expenditure and amortization.
Latupatula Corporation purchased a patent from MaFee Corp. on January 1, 2014, for $87,000. The patent had a remaining legal life of 16 years. Prepare Latupatula's journal entries to record the 2014 patent purchase and amortization.