Isolation Company acquired patent rights on January 4, 2011, for $705,000. The patent has a useful life equal to its legal life of 15 years. On January 7, 2015, Isolation successfully defended the patent in a lawsuit at a cost of $78,100. If required, round your answer to the nearest dollar.
a. Determine the patent amortization expense for the current year ended December 31, 2015.
b. Journalize the adjusting entry to recognize the amortization.