Example 7.9 Accounting for Intangible Assets On January 1 , King Company paid $40,000 cash to acquire a patent from Queen Company. The patent has 14 years of its legal life remaining. However, due to technological advancements, King estimates the patent will only provide benefits for another 10 years. In addition, King purchased a trademark from Queen for $60,000. REQUIRED: 1. Prepare any journal entries necessary to record the acquisition of the patent and the trademark. 2. Compute the amortization expense for the patent and the trademark. 3. Prepare any adjusting journal entries necessary to record the amortization expense for the current year. Example 7.9 Accounting for Intangible Assets On January 1 , King Company paid $40,000 cash to acquire a patent from Queen Company. The patent has 14 years of its legal life remaining. However, due to technological advancements, King estimates the patent will only provide benefits for another 10 years. In addition, King purchased a trademark from Queen for $60,000. REQUIRED: 1. Prepare any journal entries necessary to record the acquisition of the patent and the trademark. 2. Compute the amortization expense for the patent and the trademark. 3. Prepare any adjusting journal entries necessary to record the amortization expense for the current year