Brief Exercise $6-10($Algo$)$ Computing and recording the amortization of intangibles LO $6-10$

Never Lost Incorporated makes and sells a custom tracking token that can assist people in locating their lost items. On January $1,$ Year

$1,$ the company paid $$33,900$ cash in legal fees to establish a patent for its technology. The patent has a $15-$year useful life. Never Lost

Incorporated's financial condition just prior to establishing the patent is provided in the first row of the horizontal statements model.

Required:

a$.$ Record the acquisition of the patent in a horizontal statements model.

b$.$ Record the amortization of the patent at the end of Year $1$ in a horizontal statements model.

Note: In the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or

financing activities $($FA$).$ Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no

input is needed.

Answer is not complete.