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Journal entry for legal fees defending patent

05/05/2021 Client: muhammad11 Deadline: 2 Day

On January 2, 2021, David Corporation
purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2023, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life.

Required:
Prepare journal entries related to the patent for 2021, 2022, and 2023.

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