P9.7 (LO 4,5) The intangible assets section of Glover Restaurants at December 31, 2019, is presented below. Prepare entries to record transactions related to acquisition and amortization of intangibles, prepare the intangible assets section. Patents (60,000 cost less 6,000 amortization) Franchises (48,000 cost less 19,200 amortization) Total 54,000 28,800 82.800 The patent was acquired in January 2019 and has a useful life of 10 years. The franchise was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2020. Jan. 2 Paid 45,000 legal costs to successfully defend the patent against infringement by another company. Jan.-June Developed a new product, incurring 100,000 in research costs and 68,000 in development costs prior to technological feasibility. A patent was granted for the product on July 1. Its useful life is equal to its 20-year legal life. Sept. 1 Paid 58,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Oct. 1 Acquired a franchise for 100,000. The franchise has a useful life of 40 years. Instructions a. Prepare journal entries to record the transactions above. b. Prepare journal entries to record the 2020 amortization expense. c. Prepare the intangible assets section of the statement of financial position at December 31, 2020. b. Amortization Expense (patents) 11,000 Amortization Expense (franchises) 5,425 C. Total intangible assets 211,375