Business, 20.12.2019 02:31 dondre54

Patents ($70,000 cost less $7,000 amortization) $63,000 franchises ($48,000 cost less $19,200 amortization) 28,800 total $91,800 the patent was acquired in january 2020 and has a useful life of 10 years. the franchise was acquired in january 2017 and also has a useful life of 10 years. the following cash transactions may have affected intangible assets during 2021. jan. 2 paid $27,000 legal costs to successfully defend the patent against infringement by another company. jan.-june developed a new product, incurring $140,000 in research and development costs. a patent was granted for the product on july 1. its useful life is equal to its legal life. sept. 1 paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. the commercials will air in september and october. oct. 1 acquired a franchise for $140,000. the franchise has a useful life of 50 years. instructions
(a) prepare journal entries to record the transactions above.
(b) prepare journal entries to record the 2021 amortization expense. amortization expense (patents) $10,000 amortization expense (franchises) $5,500
(c) prepare the intangible assets section of the balance sheet at december 31, 2021. total intangible assets $243,300

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