P9-7A The intangible assets section of Sappelt Company at December 31, 2019, is presented below Franchises ($48,000 cost less $19,200 amortization) 28,800 $91,800 The patent was acquired in January 2019 and has a useful Ife of 1o years. The franchise was acquired in January 2o16 and also has a useful life of so years The following cash transactions may have affected intangible assets during 2020 Jan. 2 Paid $27,000 legal costs to successfully defend the patent against infringement by another company Jan-June D elo ed a new p duct, incurring S140 o o in r search and de k ment costs. A patent was granted for the p duct on July Its useful life is e ual to its legal life. Sept. 1 Paid $3a,00o to an estremely large defensine lineman to appear in commercials advertising the company's products. The commercials will ar in Sptlember and Oktober Oct.s Acquired a franchise for $140,00o. The franchise has a useful life of so years. Instructions (a) Prepare journal entries to record the transactions above. (b) Amortization Expense (patents) $10,000 Amortization Expense (franchises) $5.500 (b) Prepare journal entries to record the 2020 amortization expense (c) Total intangible assets $243-3oo (e) Prepare the intangible assets section of the balance sheet at December 31, 2020. Prepare entries to correct errors made in recording and amortizing intangible assets. (LO 4)