Problem 9-7A The intangble assets secion of Sappet Company at December 31, 2017, is presented below Patents ($70,000 cost less $3,000 amartization) Franchises ($37,000 cost less $14,900 ernortization $o3,00o 22,200 ization) Total The patent was acquired in January 2017 and has a useful Ite of 10 years. The franchise was acquired in January 2014 and also has a useful lite of 10 years. The following cash transactions may have affected intangible assets during 2016. Jan, 2 Paid $22,500 legal costs to successfully defend the patent against infringement by another company Developed a new product, incuring $130,000 in research and development costs, A patent was granted for the product on July 1. Its useful life is equal to its legal life une Sept. 1 Oct. 1 45,000 to an extremely large defensive lineman to appear n oommeraals advertising the company's products. The commercials will air in September and October Paid Acquired a franchise for 124,000. The franchise has a useful Ile or 50 Years. Prepare journal entries to record the transadtions abave.(Credit account titles are automatically indented when amount is cntered. Do not indent manually. Record journal cntrics in the order presented in the problem. If no entry is required, sclect No Entry for te account litles and enter O for the aniounts.) Date Account Titles and Explanathon Debit Credit LIST OF ACCOUNIS