Collins Company, organized in 1998, has these transactions related to intangible assets in that year:

Jan. 2 Purchased patent (7-year life), \(\$ 350,000\).

Apr. 1 Goodwill purchased (indefinite life), \(\$ 360,000\).

July 1 Ten-year franchise; expiration date July 1, 2006, \$450,000.

Sept. 1 Research and development costs, \(\$ 185,000\).

\section*{Instructions}

Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the entries as of December 31, 1998, recording any necessary amortization and indicating what the balances should be on December 31, 1998.