a. ABC purchased the license on July 1, 2012 for €120,000. The license has an initial term of 6 years. However, by paying a nominal fee, ABC can renew the license indefinitely for successive 6-years terms. ABC considers that there is no limit on the period of time over which the license will generate economic benefits for the firm.

b. The product-patent was purchased from company ZXC on January 2, 2010 by paying €120,000. At the date of the acquisition the remaining legal life of the patent was 10 years. On January 2, 2016 ABC determined that the remaining useful life of the product-patent was 8 years from the date of its acquisition.

c. During the year ABC spent €30,000 in research and development costs for a new process-patent. The economic viability of the project was established on October 1. Until that date ABC had spent €25,000 in research costs. The costs incurred after 1 October has been considered as development costs. On October 1, ABC estimates that the new patent will generate economic benefits for the next 5 years, while the legal life of the patent is 10 years.

c. On May 1, 2016 ABC purchased a trademark from company DEF. At the same date ABC entered in a non-competition agreement with company DEF, relating with the purchase of the trademark. In particular, ABC paid DEF €100,000, of which 75% related to the trademark while 25% reflected DEF agreement not to compete for a period of 6 years in the line of business covered by the trademark. ABC considered that the trademark will generate economic benefits for 12 years from the date of the acquisition. The legal life of the trademark is 10 years. At the end of this period ABC can renew the trademark by

paying an amount that is considered significant.

How to journalize the adjusting entries on December 31, 2016?