On January 4, 2010, the Franc Company purchased for $27,000 a patent that had been filed eight years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2011, the company paid its lawyers $10,000 for successfully defending the patent in a lawsuit.
Required: Prepare all the journal entries associated with the patent in 2010 and 2011.