Reichenbach Co., organized in 2018, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2018 and 2019.

Instructions
Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2019, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income tax effects.)

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Intangible Assets 8-year franchise; expiration date 6/30/26 7/1/18 € 48,000 10/1/18 Advance payment on laboratory space (2-year lease) 12/31/18 Net loss for 2018 including governmental business fee, €1,000, and related legal fees of 24,000 16,000 organizing, €5,000 (all fees incurred in 2018) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs (development costs of €45,000 incurred related to patent, which has achieved economic viability) 1/2/19 84,000 3/1/19 75,000 4/1/19 278,400 6/1/19 12,650 160,000 9/1/19 1/2/19