Herzogg Company, organized in 2010, has the following transactions related to intangible assets.

InstructionsPrepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2010, recording any necessary amortization and reflecting all balances accurately as of thatdate.

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1/2/10 4/1/10 7/1/10 9/1/10 Purchased patent (7-year life) Goodwill purchased (indefinite life) 10-year franchise: expiration date 7/1/2018 Research and development costs $560,000 360,000 440,000 185,000