The intangible assets section of Culver Company at December 31, 2020, is presented below. Patents ($77,000 cost less $7.700 amortization) Franchises (541.000 cost less $16,400 amortization) Total $69,300 24,600 $93.900 The patent was acquired in January 2020 and has a useful life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2021. Jan 2 Paid $31.500 legal costs to successfully defend the patent against infringement by another company, Jan- Developed a new product, incurring $140,000 in research and development costs. A patent was granted for the June product on July 1. Its useful life is equal to its legal life Sept Paid $54,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. 1 The commercials will air in September and October Oct. 1 Acquired a franchise for $144,000. The franchise has a useful life of 50 years