(d) Your answer is partially correct. In 2025, Blue determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2026. Prepare all journal entries required in 2025 and 2026. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation 2025 Amortization Expense Patents 2026 V Amortization Expense Patents Debit Credit During 2021, Blue Corporation spent $145,440 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $19,440 related to the patent were incurred as of October 1, 2021. (a) Your answer is correct. Prepare all journal entries required in 2021 and 2022 as a result of the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation 121 Research and Development Expense 021 021 V 122 V Cash (To record research and development expenses) Patents cash (To record legal expenses) Amortization Expense Patents (To record amortization expense) Amortization Expense Patents Debit 145440 19440 486 1944 Credit 145440 19440 486 1944

During 2021, Grouper Corporation spent $152,640 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2021. (a) Your answer is partially correct. Prepare all journal entries required in 2021 and 2022 as a result of the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date 2021 2021 2021 Account Titles and Explanation Research and Development Expense Cash (To record research and development expenses) Legal Fees Expense Cash (To record legal expenses) Amortization Expense Debit 152640 28080…

Blue Incorotation has a patent that will expire at the end of 2025. They spent $100,000 to successfully prosecute an infringement suit on July 1, 2018. The carrying value of this patent before the litigation is $300,000. Write journal entries to record for these activities.

Sheridan Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $323,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. (b) The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)