In this simulation, you are asked to address questions related to intangible assets and similar costs. Prepare responses to all parts. ABC Co., organized in 2018, provided you with the following information 1. Purchased a franchise for $36,0X0 on July 1, 2018. The rights to the franchise will expire on July 1, 2026. 2. Incurred a net loss of $33,000 in 2018, including a governmental incorporation fee of $2,000 and related legal fees of organizing, S5,000. (All fees were incurred in 2018.) 3. Purchased a patent on January 2, 2019, for $60,000. It is estimated to have a 10-year life. indefinite life. 4. Costs incurred to develop a secret formula as of march 1, 2019, were $90,000. The secret formula has an 5. On April 1, 2019, ABC Co. Purchased a small manufacturing concern for $700,000. Goodwill recorded in the transaction was $180.000. 6. On July 1, 2019, legal fees for successful defense of the patent purchased on January 2, 2019, were $9,500 7. Research and development costs incurred as of September 1, 2019, were $110.000 (528.800 of these costs related to the patent in item 3 were incurred subsequent to achieving economic viability). Required: Prepare the journal entries to record all the entries related to the patent during 2019. At December 31, 2019, an impairment test is performed on the franchise purchased in 2018. It is estimated that the net cash flows to be received from the franchise will be $25,000, and its recoverable amount is $13,000. Compute the amount of impairment, if any, to be recorded on December 31, 2019. What is the amount to be reported for intangible assets on the statement of financial position at December 31, 2018? At December 31, 2019? In this simulation, you are asked to address questions related to intangible assets and similar costs. Prepare responses to all parts. ABC Co., organized in 2018, provided you with the following information 1. Purchased a franchise for $36,0X0 on July 1, 2018. The rights to the franchise will expire on July 1, 2026. 2. Incurred a net loss of $33,000 in 2018, including a governmental incorporation fee of $2,000 and related legal fees of organizing, S5,000. (All fees were incurred in 2018.) 3. Purchased a patent on January 2, 2019, for $60,000. It is estimated to have a 10-year life. indefinite life. 4. Costs incurred to develop a secret formula as of march 1, 2019, were $90,000. The secret formula has an 5. On April 1, 2019, ABC Co. Purchased a small manufacturing concern for $700,000. Goodwill recorded in the transaction was $180.000. 6. On July 1, 2019, legal fees for successful defense of the patent purchased on January 2, 2019, were $9,500 7. Research and development costs incurred as of September 1, 2019, were $110.000 (528.800 of these costs related to the patent in item 3 were incurred subsequent to achieving economic viability). Required: Prepare the journal entries to record all the entries related to the patent during 2019. At December 31, 2019, an impairment test is performed on the franchise purchased in 2018. It is estimated that the net cash flows to be received from the franchise will be $25,000, and its recoverable amount is $13,000. Compute the amount of impairment, if any, to be recorded on December 31, 2019. What is the amount to be reported for intangible assets on the statement of financial position at December 31, 2018? At December 31, 2019