Question - Baker Company purchased a patent on 1/1/2016 for $240m. The patent has a useful life of 5 years. The company also spent $150m in 2016 on research and development towards developing new patents. Provide the entries the company will make for the following transactions:
1. Purchase of the patent on 1/1/2016
2. Use of the purchased patent during 2016
3. Spent $150m on research and development in 2016