Janes Company provided the following information on intangible assets:

A patent was purchased from the Lou Company for $700,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lous accounting records at a net book value of $350,000 when Lou sold it to Janes.

During 2021, a franchise was purchased from the Rink Company for $500,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase.

Janes incurred research and development costs in 2021 as follows:

Materials and supplies $ 140,000

Personnel 180,000

Indirect costs 60,000

Total $ 380,000

Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.

Required:

1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.

2. Prepare a schedule showing the intangible asset section of Janess December 31, 2021, balance sheet.