Essay
Record the following events and transactions for Axle Company for the current year.
1. On January 2, Axle purchased a patent for $35,000 with a useful life of 10 years. Prepare the journal entry to amortize the patent at the end of the first year.
2. On January 4, Axle purchased a music distributor's collection of lyrics and songs for $1,425,000. The copyrights are expected to last another 30 years. Prepare the journal entry to amortize the copyright at the end of the first year.
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