1. The intangible assets section of Fuad Company at December 31, 2020, is presented below.

Patents ($60,000 cost less $6,000 amortization)	$54,000
Copyrights ($36,000 cost less $12,000 amortization)	24,000
Total	$78,000

The patent was acquired in January 2020 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 12 years.

The following cash transactions may have aected intangible assets during 2021.

Jan. 2	Paid $36,000 legal costs to successfully defend the patent against infringement by
	another company.
Jan June	Developed a new product, incurring $150,000 in research and development costs. A
	patent was granted for the product on July 1. Its useful life is equal to its legal life.
Sept. 1	Paid $75,000 to a quarterback to appear in commercials advertising the companys
	products. The commercials will air in September and October
Oct. 1	Acquired a copyright for $120,000. The franchise has a useful life of 50 years.

Instructions

1. Prepare journal entries to record the transactions above. (1.6 marks)

2. Prepare journal entries to record the 2021 amortization expense. (2.2 marks)

3. Prepare the intangible assets section of the balance sheet at December 31, 2021.