The following information applies to Vantage Inc.’s patent account. 

1. Vantage develops a patent related to apple peeling in house on 12/31/2010 at a cost of $250,000 (legal fees were $15,000, the remainder was R&D related expenditures). The patent initially had a legal life of 20 years, but Vantage only thought that they would use it for 10 years. On 1/1/2018, Vantage realized that the patent would have a remaining useful life of 1 year. 

2. Vantage bought a patent relating to orange peeling on 7/1/2016 for $902,000. The patent had a remaining useful life of 11 years and Vantage planned on using it for all 11 years. On 12/31/2017 Vantage determined that the expected future cash flows would be approximately $100,000 for the next 9 years. 

3. Vantage bought a patent relating to banana peeling on 1/1/2018 for $550,000. They expected to use the patent for the full remaining life of 6 years. 4. Vantage bought a patent relating to pear peeling also on 1/1/2018 for $550,000. 

This patent had a remaining life of 10 years and they fully intended to use it for the full legal life. However, on 6/1/2018 the patent’s legal legitimacy was brought into question and Vantage now thinks it only has 2 years of use remaining. 

Part A. For 2017, compute the total net amount of patents that Vantage has on their books. 

Part B. For 2017, compute the total amount of amortization expense that Vantage should record and prepare the corresponding journal entry. Part C. For 2018, compute the total net amount of patents that Vantage has on their books. Part D. For 2018, compute the total amount of amortization expense that Vantage should record and prepare the corresponding journal entry.

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