Problem 9-7A The intangible assets section of Sheridan Company at December 31, 2019, is presented below Patents ($82,000 cost less $8,200 amortization) Franchises ($43,000 cost less $17,200 amortization) $73,800 25,800 $99,600 Total 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 $22,500 legal costs to successfully defend the patent against infringement by another company. Jn-Developed a new product, incurring $146,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its June legal life. Sept. 1 Paid $52,000 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 $142,000. The franchise has a useful life of 50 years. Oct. 1