Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by the Thorne Company in 2010.

1. Thorne developed a new manufacturing process, incurring research and development costs of $136,000. The company also purchased a patent for $60,000. In early January, Thorne capitalized $196,000 as the cost of the patents. Patent amortization expense of $9,800 was recorded based on a 20-year useful life.

2. On July 1, 2010, Thorne purchased a small company and as a result acquired goodwill of $92,000. Thorne recorded a half-year's amortization in 2010, based on a 50-year life ($920 amortization). The goodwill has an indefinite life. Instructions

Prepare all journal entries necessary to correct any errors made during 2010. Assume the books have not yet been closed for 2010.