The intangible assets section of Blue Spruce Company at December 31, 2022, is presented here. Patents ($90,000 cost less $9,000 amortization) $81,000 Franchises ($47,700 cost less $19,080 amortization) 28,620 Total $109,620 The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Paid $34,200 legal costs to successfully defend the patent against infringement by another company. Sept. 1 Oct. 1 Nov.- Dec. Paid $53,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. Acquired a franchise for $141,600. The franchise has a useful life of 50 years. Developed a new product, incurring $149,000 in research and development costs during December. A patent was granted for the product on January 1, 2024.