SOAL 1 P10-7B The intangible assets section of Zevon Company at December 31, 2002, is presented below. Patent ($60,000 cost less $6,000 amortization) $54,000 Copyright ($36,000 cost less $14,400 amortization) 21,600 Total $75,600 The patent was acquired in January 2002 and has a useful life of 10 years. The copyright was acquired in January 1999 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2003. Jan. 2 Paid $27,000 legal costs to successfully defend the patent against infringement by another company. Jan.-June Developed a new product, incurring $140,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Sept. 1 Paid $60,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Oct. 1 Acquired a copyright for $40,000. The copyright has a useful life of 50 years. Instructions (a) Prepare journal entries to record the transactions above. (b) Prepare journal entries to record the 2003 amortization expense for intangible assets. (c) Prepare the intangible assets section of the balance sheet at December 31, 2003. (d) Prepare the note to the financials on Zevon's intangibles as of December 31