E12-6 (Recording and Amortization of Intangibles) Rolanda Marshall Company, organized in 2006, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2007. 1/2/2007 Purchased patent (8-year life) 350,000 4/1/2007 Purchased goodwill (indefinite life) 360,000 7/1/2007 Purchased franchise with 10-year life; expiration date 7/1/17 450,000 8/1/2007 Payment of copyright (5-year life) 156,000 9/1/2007 Research and development costs 215,000 $1,531,000 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, 2007, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)