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On June 30, 2014, Mobley Corporation acquired a patent for $4 million. The patent was estimated to have an eight-year life and no residual value. Mobley uses the straight-line method of amortization for intangible assets. At the beginning of January 2016, Mobley successfully defended its patent against infringement. Litigation costs totaled $650,000. Required: 1. Calculate patent amortization for 2014 and 2015. 2. Prepare the journal entry to record the 2016 litigation costs. 3. Calculate amortization for 2016. 4. Repeat requirements 2 and 3 assuming that Mobley prepares its financial statements according to International Financial Reporting Standards (IFRS).

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The following selected transactions relate to liabilities of Chicago Glass Corporation for 2016. Chicago's fiscal year ends on December 31. 1. On January 15, Chicago received $7,000 from Henry Construction toward the purchase of $66,000 of plate glass to be delivered on February 6. 2. On February 3, Chicago received $6,700 of refundable deposits relating to containers used to transport glass components. 3. On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price. 4. First quarter credit sales totaled $700,000. The state sales tax rate is 4% and the local sales tax rate is 2%. Required: Prepare journal entries for the above transactions.

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