Janes Company provided the following information on intangible assets:

A patent was purchased from the Lou Company for $1,100,000 on January 1, 2016. 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 $430,000 when Lou sold it to Janes.

During 2018, a franchise was purchased from the Rink Company for $580,000. 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 2018 as follows:

Materials and supplies	$	148,000
Personnel		188,000
Indirect costs		68,000
Total	$	404,000

Effective January 1, 2018, 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 2016 through 2018 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janess December 31, 2018, balance sheet.

epare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Required 1

Required 2

Prepare the entries necessary for years 2016 through 2018 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	January 01, 2016
2	December 31, 2016
3	December 31, 2017
4	December 31, 2018
5	December 31, 2018
6	May 20, 2018
7	December 31, 2018