The intangible assets section of Glover Company at December 31. 2006. is presented below.

The patent was acquired in January 2006 and has a useful life of 10 years The copyright was acquired in January 2003 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2007.
Jan. 2 Paid $36,000 legal costs to successfully defend the patent against infringement by another company.
Jan.-June Developed a new product, incurring S14().00() in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life.
Sept. 1 Paid $75,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October.
Oct. 1 Acquired a copyright for $80,000. The copyright has a useful life of 50 years.
Instructions

(a) Prepare journal entries to record the transactions above.

(b) Prepare journal entries to record the 2007 anion i/ation expense for intangible assets.

(c) Prepare the intangible assets section ol the balance sheet at December 31. 2007.

(d) I 111 ! r-, l> Prepare the note to the Financials on Glover's intangibles as of December 31.
2007.

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Patent ($60,000 cost less $6,000 amortization) $54,000 Copyright ($36,000 cost less $14,400 amortization) Total 21,600 $75,600