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P12.1B (LO 1,2,3,5) (Correct Intangible Asset Account) Dolphin Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021: Intangible Assets 3/1/2020 10-year franchise agreement; expires 2/28/28 $ 60,000 3/1/2020 Organization costs 7,000 4/1/2020 Advance payment for 2 years for office space 24,000 6/30/2020 Purchased a patent (8-year life) 80,000 9/1/2020 Cost to develop a patent (10-year life) 40,000 12/31/2020 Net operating loss for 2020 61,000 6/30/2021 Research and development costs 265,000 9/1/2021 Legal fee to successfully defend internally 13,500 developed patent Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income tax effects.)