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LOA.5) P9-7A The intangible assets section of Sappelt Company at December 31, 2019, is presented below. Patents ($70,000 cost less $7,000 amortization) Franchises ($48,000 cost less $19,200 amortization) 28,800 $63,000 Total $91,800 The patent was acquired in January 2019 and has a useful life of 10 years. The franchise was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2020. Paid $27,00o legal costs to successfully defend the patent against infringement by another company. Jan. 2 Jan.- Developeda new product, incurring $140,000 in research and development costs. A patent was granted for June the product on July 1. Its useful life is equal to its legal life. Sept. Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the company's 1 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) Amortization Expense (patents) $10,000 Amortization Expense (franchises) $5.500 (b) Prepare journal entries to record the 2020 amortization expense. (c) Total intangible assets $243.300 (c) Prepare the intangible assets section of the balance sheet at December 31, 2020. Prepare entries to correct errors made in recording and anmortizing intangible assets. (LO 4) e:05 PM

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