The Family company was expanding as a result they engaged in the following activities

beginning in 2016.

a.Paid $30,000 to the Major League Ballpark to have the Family name displayed

on the billboard for three years.

b.Purchased a franchise for $20,000 to operate trolley services around the city for

tourists. The trolley service is expected to be decommissioned in 4 years due to

the maintenance costs, there is hope that it will remain in service.

c.Purchased a patent for $45,000 the patent was originally filed in 2011

d.The owner of the patent was a well-known inventor and author who sold Family

the rights to his novel in exchange for 5,000 shares of stock. The stock has a $5

par value and is currently selling for $25 per share. The novel is expected to sell

1,000,000 copies in the next 2 years.

Required:

Prepare the journal entries to record the amortization of the intangible assets for 2016. Amortize over their legal life unless otherwise noted.