7.8

Acquisition and Amortization of Intangible Assets TUM Technologies had these transactions related to intangible assets during the year. Jan. 2 Purchased a patent from Luna Industries for $200,000. The remaining legal life of the patent is 15 years, and TLM expects the patent to be useful for 8 years. Jan. 5 Paid legal fees in a successful legal defense of the patent of $80,000. June 29 Registered a trademark with the federal government, Reglstration costs were \$12,100. TLM expects to use the trademark indefinitely. Sept. 2 Paid research and development costs of $500,000. Required: 1. Prepare the joumal entries necessary to record the transactions. If no entry if required, select "No entry required" and leave the amount booces blank. If an amount box does not require an entry, leave it blank. 2. Prepare the entries necessary to record amortization expense for the intangible assets. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. 3. What is the balance of the intangible assets at the end of the year? Patent Trademark