1 The following transactions involving intangible assets of Simmons Corporation occurred on or near December 31, 2020. 2 3 1 Simmons paid Galaxy Company $600,000 for the exclusive right to market a particular product, using the Galaxy name and logo in promotional material. The franchise runs for as long as Simmons is in business. 4 5 6 2 Simmons spent $450,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 7 8 9 3 In January, 2021, Simmons' application for a patent (#2 above) was granted. Legal and registration costs incurred were $180,000. The patent runs for 20 years, but Simmons estimates that the manufacturing process will only be useful to Simmons for nine years. 10 11 12 4 Simmons incurred $120,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent is virtually worthless to Simmons. The carrying value of this patent before the litigation was $480,000. 13 14 15 5 Simmons incurred $100,000 of legal costs in successfully defending one of its patents in an infringement suit. The carrying value of this patent before the litigation was $320,000. The patent expires in December, 2026. 16 17 18 6 Simmons paid Advanced Laboratories $104,000 for research and development work performed under contract for Simmons. The benefits are expected to last six years. 19 20 21 7 22 Simmons purchased James Company four years ago and at that time recorded goodwill of $640,000. The James Division's net identifiable assets, including goodwill, have a carrying amount of $1,425,000 at 12/31/21. The fair value of the Division's expected future net cash flows (undiscounted) is $1,500,000, and its fair value is estimated to be $1,350,000. 23 24 25 8 Simmons acquired a copyright from Banner Company for $2,000,000 with five years left on its legal life. At 12/31/21, its expected future net cash flows (undiscounted) are $1,500,000, and its fair value is $1,200,000. 26 27 28 Write the journal entry(ies) needed at that date of the transactions listed above and any journal entries needed at December 31, 2021. 29 If no entry is required at a particular date, write "no entry