The intangible assets section of the balance sheet for Cuso Company at December 34; 2007, is presented here.

Patents ($70,000 cost less $7,000 amortization) $63,000 Copyrights ($48,000 cost less $18,000 amortization) 30,000 Total $93,000 The patent was acquired in January 2007 and has a useful life of 10 years. The copyright was acquired in January 2005 and also has a useful life of 8 years. The following cash transactions may have affected intangible assets during 2008.

Jats 2 Paid $22,500 legal costs to successfully defend the patent against infringement by another company.

Jan.June Developed a new product, incurring $220,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $14,000.

Sept. 1 Paid $110,000 to an extremely large defensive lineman to appear in commercials advertising the company’s products. The commercials will air in September and October.

Oct. 1 Acquired a copyright for $150,000. The copyright has a useful life and legal life of 50 years.

Instructions

(a) Prepare journal entries to record the transactions.

(b) Prepare journal entries to record the 2008 amortization expense.

(c) Prepare the intangible assets section of the balance sheet at December 31, 2008.

(d) Prepare the notes to the financial statements on Cuso Company's intangible assets as of December 31, 2008.