The intangible assets and goodwill reported by Pharoah Corporation at December 31,2020 , follow: A copyright (\#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: Jan. 5 Paid $7,020 in legal costs to successfully defend the trademarks against infringement by another company. July 1 Developed a new product, incurring $189,440 in research and $50,200 in development costs with probable future benefits. The product is expected to have a useful life of 20 years. Sept. 1 Paid $58,200 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September. Oct. 1 Acquired another copyright (\#2) for $162,000. The new copyright has a useful life of six years. Dec. 31 Determined the fair value of the goodwill to be $85,280. There was no indication that the copyrights or trademarks were impaired. Date Account Titles and Explanation Debit Credit (To record research expense) (To record development costs)