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Flint Corporation purchases a patent from Carla Vista Company on January 1, 2017, for $48,000. The patent has a remaining legal life of 16 years. Flint feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Flint's books is $38,400. In January, Flint spends $30,400 successfully defending a patent suit. Flint still feels the patent will be useful until the end of 2026.
Prepare the journal entries to record the $30,400 expenditure and 2019 amortization.(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 0 for the amounts.)
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