9-7A

The intangible assets section of Glover Company at December 31, 2013, is presented below.

Patents ($60,000 cost less $6,000 amortization)		$54,000
Franchises ($48,000 cost less $19,200 amortization)		28,800
Total		$82,800

The patent was acquired in January 2013 and has a useful life of 10 years. The franchise was acquired in January 2010 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2014.

Jan. 2		Paid $36,000 legal costs to successfully defend the patent against infringement by another company.
Jan.