On January $1,2027,$ Sheridan Company had a balance of $$417,000$ of goodwill on its balance sheet that resulted from the purchase of

a small business in a prior year. The goodwill had an indefinite life. During $2027,$ the company had the following additional

transactions.

Jan. $2$ Purchased a patent $(6-$year life$)$ $$301,350.$

July $1$ Acquired a $9-$year franchise; expiration date July $1,2036,$ $$633,600.$

Sept. $1$ Research and development costs $$189,000.$

$($a$)$ and $($b$)$

$($a$)$ Prepare a tabular summary to record the January $1$ balance in the Goodwill account as well as the $2027$ transactions

related to intangibles. All costs incurred were for cash.

$($b$)$ Record any necessary amortization as of December $31,2027.$

$($If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign $($or parentheses$)$ in front of the amount

entered for the particular Asset, Liability or Equity item that was reduced.$)$