Bright Designs Ltd. began operations in 20X5 and, at the end of its first year of operations, reported a balance of $674,100 in an account called "intangibles." Upon further investigation, it is discovered that the account had been debited throughout the year as follows: 5 Jan. 1 Feb 1 July 1 Aug 10 Nov 30 Nov. Organization costs; legal fees. Economic life is indefinite. $ 10,990 Patent registration; legal fees re: patent with 20 year life to be used in research activities. 5,600 Operating expenses, first six months. 246,400 Goodwill; excess of purchase price of an advertising company paid over tangible assets acquired. 179,200 Copyright acquired; remaining legal life is 29 years but economic life 23,500 is 10 years. registration; legal fees. The trademark is expected to have an indefinite economic life. 9,eee Staff training costs; staff is expected to stay with the company for an average of three years; however, there are no employment 30,900 contracts. Research costs incurred over the year; 40% of all research costs are properly classified as capitalizable development costs. The product 168,600 developed will begin commercial production next year. $674,100 Trademark S Dec. 31 Dec. Required: 1. Prepare a correcting entry that reallocates all amounts charged to intangibles to the appropriate accounts. State any assumptions made. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 Record the entry that reallocates all amounts charged to intangibles. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 2. Calculate amortization expense on intangible assets for 20X5. Straight-line amortization, to the exact month of purchase, is used. All residual values are expected to be zero. (Round your answers to the nearest whole dollars.) 20X5 Amortization expense