Current Attempt in Progress The following transactions involving intangible assets of Sandhill Corporation occurred on or near December 31, 2020. 1. 2 3. Minton paid Grand Company $404,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Sandhill is in business, Sandhill spent $678,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. In January, 2021, Sandhill's application for a patent (#2 above) was granted. Legal and registration costs incurred were $201,600. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. Sandhill incurred $179,200 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2024 Sandhill incurred $460.800 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $277 200, is deemed worthless. Sandhill paid Sneed Laboratories $132,080 for research and development work performed by Sneed under contract for Sandhill. The benefits are expected to last six years. 4. 5. 6. (a) Your answer has been saved. See score details after the due date. Prepare journal entries for on the date of transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit LULAR Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. Franchises 404000 Cash 404000 2. Research and Development Expense 678000 Cash 678000 3. Patents 201600 Cash 201600 Patients 179200 Cash 179200 5. Legal Fees Expense 460800 Cash 460800 (To record amount incurred.) Patent Expense 277200 Patents 277200 (To record unamortized cost.) Research and Development Expense 6. 132080 Cash 132080 Attempts of lused Prepare journal entry (ies) for on December 31, 2021 to record any resultant amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Debit Credit No. Account Titles and Explanation 1. 2 3. 4. 5. 6. Save for Later Attempts: 0 of 1 used Submit