B. It was sold for $21,000. c. It was sold for $31,000 P9.7A (LO 4, 5) The intangible assets section of Sappelt Company at December 31, 2020, is presented below. $63,000 Patents ($70,000 cost less $7,000 amortization) Franchises ($48,000 cost less $19,200 amortization) 28,800 $91,800 Total The patent was acquired in January 2020 and has a useful life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2021 Paid $27,000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $140,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Jan. 2 Jan.-June sets, Natural Resources, and Intangible Assets Paid $50,000 to an extremely large defensive lineman to appear in co advertising the company's products. The commercials will air in September an Sept. 1 October. Oct. 1 Acquired a franchise for $140,000. The franchise has a useful life of 50 years. Instructions a. Prepare journal entries to record the transactions above. ion b. Prepare journal entries to record the 2021 amortization expense. 00 c. Prepare the intangible assets section of the balance sheet at December 31, 2021. P9.8A (LO 4) Due to rapid turnover in the accounting department, a number of transactions intangible assets were improperly recorded by Goins Company in 2020. 1. Goins developed a new manufacturing process, incurring research and developmer $136,000. The company also purchased a patent for $60,000. In early January, Goins $196,000 as the cost of the patents. Patent a 10-year useful life. 2. On July 1, 2020, Goins purchased a small company and as a result acquired goodwill Goins recorded a half-year's amortization in 2020, based on a 50-year life ($920 amorti goodwill has an indefinite life. amortization expense of $19,600 was recorde