The Astro Company entered into the following transactions:

(A) On January 1, 2020, purchased a franchise with unlimited life, for an initial franchise fee of $250,000. Of this amount, $70,000 was paid on Jan. 1, and the balance is payable in 3 annual payments of $60,000 each, beginning Jan.1, 2021. The effective interest rate is 8%. Present value information for 8%, three periods are as follows:

Present value of 1 0.79383;

Present value of an ordinary annuity of 1 2.57710

Present value of an annuity due of 1 2.78327

Prepare journal entries to record the transaction, including appropriate amortization for the year 2020 (if needed). Amortize the intangible assets using the straight-line method on a monthly basis

(B) Registered a patent on March 1, 2020. Legal fees incurred in registration were $8,500. Research and development costs of 2020 for the patent were $50,000. The patent has a legal and estimated useful life of 20 years. All the costs were paid in cash. Prepare journal entries to record the transaction, including appropriate amortization for the year 2020 (if needed). Amortize the intangible assets using the straight-line method on a monthly basis.

(C) On October 1, 2020, registered a trademark. Astro’s advertising department promoted the trademark at a cost of $100,000. Registration fees were $500, and the legal fees incurred were $3,500. The trademark is expected to last indefinitely. All the costs were paid in cash. Prepare journal entries to record the transaction, including appropriate amortization for the year 2020 (if needed). Amortize the intangible assets using the straight-line method on a monthly basis.