The intangible assets section of Flounder Company at December 31, 2022, is presented here. Patents ($87,000 cost less $8,700 amortization) $78,300 Franchises ($43,400 cost less $17,360 amortization) 26,040 Total $104,340 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 $28,800 legal costs to successfully defend the patent against infringement by another company. Sept. 1 Oct. 1 Nov.- Dec. Paid $45,000 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 $135,600. The franchise has a useful life of 50 years. Developed a new product, incurring $143,000 in research and development costs during December. A patent was granted for the product on January 1, 2024.