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The following transactions involving intangible assets of Minton Corporation occurred on or near December 31,...

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Accounting

The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2017.

1. Minton paid Grand Company $400,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Minton is in business.
2. Minton spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful.
3. In January, 2018, Minton's application for a patent (#2 above) was granted. Legal and registration costs incurred were $210,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years.
4. Minton incurred $160,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2021.
5. Minton incurred $480,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $252,000, is deemed worthless.
6. Minton paid Sneed Laboratories $104,000 for research and development work performed by Sneed under contract for Minton. The benefits are expected to last six years.

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