(c) Intangible Assets

Patents

Franchises .

Total intangible assets

Part b and c required

The intangible assets section of Nash Company at December 31, 2016, is presented below. Patents (63,900 cost less 6,390 amortization) Copyrights (53,600 cost less 21,440 amortization) 57,510 32,160 89,670 Total The patent was acquired in January 1, 2016 and has a useful life of 10 years. The copyright was acquired in January 1, 2013 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2017. Jan. 2 Jan.- June Paid 45,630 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring 115,460 in research costs and 103,330 in development costs prior to technological feasibility. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Paid 111,100 to an X-Games star to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for 148,000. The copyright has a useful life of 40 years. Sept. 1 Oct. 1 Date Account Titles and Explanation Debit Credit Jan. 2 Patents 45630 cash 45630 Jan. - June Research and Developmen 218790 Cash 218790 Sept. 1 Advertising Expense 111100 Cash 111100 Oct. 1 Copyrights 148000 cash 148000 (b) Prepare journal entries to record the 2017 amortization expense for intangible assets. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 31 (To record patents amortization.) Dec. 31 (To record copyrights amortization.) By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor