On January $1,2024,$ Weaver Corporation purchased a patent for $$219,000.$ The remaining legal life is $20$ years, but the company estimates the patent will be useful for only six more years. In January $2026,$ the company incurred legal fees of $$39,000$ in successfully defending a patent infringement suit. The successful defense did not change the company$$s estimate of useful life. Weaver Corporation$$s year$-$end is December $31.$

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Required:

$1.$ Record the purchase in $2024$; amortization in $2024$; amortization in $2025$; legal fees in $2026$; and amortization in $2026.$

$2.$ What is the balance in the Patent account at the end of $2026?$

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Required:

$1.$ Record the purchase in $2024$; amortization in $2024$; amortization in $2025$; legal fees in $2026$; and amortization in $2026.$

$2.$ What is the balance in the Patent account at the end of $2026?$

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Satellite Systems modified its model Z$2$ satellite to incorporate a new communication device. The company made the following expenditures:

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Basic research to develop the technology$ $4,300,000$Engineering design work$1,240,000$Development of a prototype device$630,000$Testing and modification of the prototype$430,000$Legal fees for patent application$83,000$Legal fees for successful defense of the new patent$43,000$Total$ $6,726,000$

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During your year$-$end review of the accounts related to intangibles, you discover that the company has capitalized all costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.