The following are selected 2010 transactions of Franco Corporation.
Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite.
May 1 Purchased for $90,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.
Instructions: Prepare necessary adjusting entries at December 31 to record amortization required by the events above. (If there is no transaction, enter No entry as the account and 0 for the amount.)