Gill Company, organized in 2017, has the following transactions related to intangible assets. 1/2/17 Purchased patent (6-year life) $540,000 4/1/17 Goodwill purchased (indefinite life) 360,000 7/1/17 14-year franchise; expiration date 7/1/2031 532,000 9/1/17 Research and development costs 158,000 Collapse question part (a1) Prepare the necessary entries to record these intangibles. All costs incurred were for cash.

Make the adjusting entries as of December 31, 2017, recording any necessary amortization.