(Accounting for Patents) During 2007, Thompson Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2007, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $24,000 related to the patent were incurred as of October 1, 2007. (a)Prepare all journal entries required in 2007 and 2008 as a result of the transactions above. Date Account/Description 2007 Research & Development Expense Debit? Cash Credit? (To record research and development costs) Account /Description Patents Debit? Cash Credit? ^(To record the patent) Account/Description Patent Amortization Expense Debit? Patents Credit? ^(To record amortization) 2008 Account/Description Patent amortization Expense Debit? Patents Credit? (b) On June 1, 2009, Thompson spent $12,400 to successfully prosecute a patent infringement. As a result, the estimate of useful life was extended to 12 years from June 1, 2009. Prepare all journal entries required in 2009 and 2010. (Round amounts to 0 decimal places, e.g. 2,510.) Date Account/Description 2009 Patents Debit? Cash Credit? (To record prosecution of patent infringement) Account/Description Patent Amortization Expense Debit? Patents Credit? (To record amortization) 2010 Patent Amortization Expense Debit? Patents Credit? (c) In 2011, Thompson determined that a competitor’s product would make the New Age Piano obsolete and the patent worthless by December 31, 2012. Prepare all journal entries required in 2011 and 2012. (Round amounts to 0 decimal places, e.g. 2,510.) Date Account/Description 2011 and 2012 Patent Amorization Expense Debit? Patents Credits?