Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A patent with a 15-year remaining...

Amortization Expense

For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense:

1. A patent with a 15-year remaining legal life was purchased for $756,000. The patent will be commercially exploitable for another six years.
   


2. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $88,200 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 15 years and is currently worth $720,000.
   


3. A franchise granting exclusive distribution rights for a new wind turbine within a three-state area for four years was obtained at a cost of $72,000. Satisfactory sales performance over the four years permits renewal of the franchise for another four years (at an additional cost determined at renewal).