Sarasota Corporation purchases a patent from Ivanhoe Company on January 1, 2020, for $72,000. The patent has a remaining legal life of 16 years. Sarasota feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Sarasota’s books is $57,600. In January, Sarasota spends $32,800 successfully defending a patent suit. Sarasota still feels the patent will be useful until the end of 2029.

Prepare the journal entries to record the $32,800 expenditure and 2022 amortization. 

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