On January 1,2017, Crane Company had a balance of $382,000 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 2017, the company had the following additional transactions Jan. 2 July 1 Sept. 1 Purchased a patent (7-year life) $297,150. Acquired a 9-year franchise; expiration date July 1,2026, $590,400. Research and development costs $176,000 (a) and (b) Your answer is partially correct. (a) Prepare a tabular summary to record the January 1 balance in the Goodwill account as well as the 2017 transactions related to intangibles. All costs incurred were for cash. Record any necessary amortization as of December 31,2017. (b) (Ifa transaction causes a decrease in Assets,Liabilities or Stockholders'Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (a) Prepare a tabular summary to record the January 1 balance in the Goodwill account as well as the 2017 transactions related to intangibles. All costs incurred were for cash. Record any necessary amortization as of December 31, 2017. (b) (lf a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Patents Cash Franchise Goodwil (a)Bal.$ Jan. 2 July 1 Sept. 1 (b) Dec. 31 297150 297150 590400 531360 254700 (a) Prepare a tabular summary to record the January 1 balance in the Goodwill account as well as the 2017 transactions related to intangibles. All costs incurred were for cash. Record any necessary amortization as of December 31,2017. (b) (Ifa 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.) Stockholders' Equity Liabilities+ Retained Earnings Expense Goodwill Common Stock Revenue 176,000 42450