16. The intangible assets section of Pride Company at Dec.31, 2010 is presented below:

Intangible assets
Patent ($300,000 cost less $30,000 amortization)	$270,000
Franchise ($180,000 cost less $72,000 amortization)	$108,000
Goodwill	$150,000	$528,000

The patent was acquired in January 2010 and has a useful life of 10 years. The franchise was

acquired in January 2007 and also has a useful life of 10 years.

The following cash transactions may have affected intangible assets during 2011.

Jan2	Paid $135,000 legal costs to successfully defend the patent against infringement by another company.
Jan - June	Developed a new product, incurring $690,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life.
Aug.1	Paid for commercial advertising $125,000 for the companys product.
Oct.1	Acquired a franchise for $600,000. The franchise has a useful life of 50 years

Instructions:

1. Prepare journal entries to record the 2011 amortization expense.
2. Prepare journal entries to record the 2011 amortization expense for intangible assets.
3. Prepare the intangible assets section of the balance sheet at December 31, 2011.