Bittoto Ltd has four different intangible assets at the end of 2019. Facts concerning each are as follows:

1. franchise. On 2 January 2019, Bittoto Ltd purchased a franchise to distribute a new product for a 10‐year period with no right of renewal. Cost of the franchise was $860 000.

2. copyright. On 3 April 2019, the company purchased a copyright for $150 000. The remaining legal life of the copyright was 12 years, and it is expected to have a useful life of 8 years to Bittoto Ltd with no residual value.

3. goodwill. Bittoto Ltd began operations on 2 January 2015 by purchasing another company for a total cash payment of $640 000. Included in the purchase price was a payment of $120 000 for goodwill. The managing director of Bittoto Ltd believes that ‘the goodwill is such an important non‐current asset of the company that it should last for 100 years’.

4. patent. Bittoto Ltd purchased a patent on 1 July 2019 from Chai Ltd for $86 000. The patent had been registered initially on 1 January 2015 and is expected to be useful to Bittoto Ltd for another 10 years.

Required

(a) Prepare journal entries to record the acquisition of intangible assets during 2019.

(b) For each intangible asset, prepare journal entries that are necessary at the end of the annual accounting period on 31 December 2019.