The following transactions involving intangible assets of Sheridan Corporation occurred on or near December 31, 2020. 1. 2. 3. Minton paid Grand Company $496.000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Sheridan is in business. Sheridan spent $720.000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. In January, 2021, Sheridan's application for a patent (#2 above) was granted. Legal and registration costs incurred were $207,900. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. Sheridan incurred $204.800 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2024 Sheridan incurred $456.000 in an unsuccessful patent defense. As a result of the adverse verdict the patent, with a remaining unamortized cost of $287,280, is deemed worthless. Sheridan paid Sneed Laboratories $100.880 for research and development work performed by Sneed under contract for Sheridan. The benefits are last six years. 5. 6. Part 1 Prepare journal entries for on the date of transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. (To record amount incurred.) (To record unamortized cost.) 6. Part 2 Prepare journal entry (ies) for on December 31, 2021 to record any resultant amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry"for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 5. 6