Marigold Corporation purchases a patent from Sunland Company on January 1, 2017, for $54,000. The

Marigold Corporation purchases a patent from Sunland Company on January 1, 2017, for $54,000. The patent has a remaining legal life of 16 years. Marigold feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Marigold’s books is $43,200. In January, Marigold spends $25,600 successfully defending a patent suit. Marigold still feels the patent will be useful until the end of 2026.

Prepare the journal entries to record the $25,600 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.)

Account Titles and Explanation	Debit	Credit
(To record expenditure of patents)
(To record amortization expense)