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E10-12 Part 1. Advantage Press manufactures high-speed printers. Advantage recently paid $1 million for a...

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E10-12 Part 1. Advantage Press manufactures high-speed printers. Advantage recently paid $1 million for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only 8 years. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. Part 2. After using the patent for 4 years, Advantage learns at an industry trade show that another company is designing a more-efficient printer. On the basis of this new information, Advantage decides, starting with year 5, to amortize the remaining cost of the patent over 2 remaining years, giving the patent a total useful life of 6 years. Record amortization for year 5

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