Problem #6 (18 Points) Nelson Company, organized in 2017, has these transactions related to intangible assets in that year.

Jan 2	Purchased a patent (5 year life) $325,000.
April 1	Goodwill purchased (indefinite life) $360,000.
July 1	Acquired a 9-year franchise, expiration date July 1, 2026, $720,000.
Sept 1	Research and Development costs $185,000.

Required:

1	Prepare the necessary entries to record these intangibles. All costs were for cash.
2	Make the entries as of December 31, 2017, recording any necessary amortization.