Problem 9-7A (Part Level Submission) The intangible assets section of Blossom Company at December 31, 2016, is presented below. Patents (68,000 cost less 6,800 amortization) Franchises (41,600 cost less 16,640 amortization) Total 61,200 24,960 86,160 The patent was acquired in January 1, 2016 and has a useful life of 10 years. The franchise was acquired in January 1, 2013 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2017. Jan. 2 Jan.-June Paid 43,110 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring 119,600 in research costs and 73,000 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. Paid 55,200 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a franchise for 100,800. The franchise has a useful life of 40 years. Sept. 1 Oct. 1 (c) Prepare the intangible assets section of the statement of financial position at December 31, 2017. BLOSSOM COMPANY Partial Statement of Financial Position December 31, 2017 Intangible Assets Patents Copyrights Total Intangible Assets