On January 1, Year One, Paik Corporation purchases a patent from Geiger Company for $2 million dollars, payable at the end of two years. The patent has no residual value and it has an expected useful life of 4 years, but a legal life of the patent is 10 years. No interest is stated in the contract but Paik could borrow that the money from a bank at 5 percent interest. 

Amortization is recorded using the straight-line method. On July 1, Year Three, Paik pays their law firm $100,000 to defend successfully a patent lawsuit. Do NOT input $ or cents; only rounded dollar amounts. Determine the amount for the patent acquisition on January 1, Year One debited to the Patent account. 

Determine the amount for the year-end adjusting entry to the Interest Expense account.