The intangible assets section of Ghazi Company at December 31, 2019, is presented below. Patents ($60,000 cost less $6,000 amortization) $54,000 Franchises ($48,000 cost less $19,200 amortization) 28,800 Total $82,800 The patent was acquired in January 2019 and has a useful life of 10 years. The franchise was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2020. Jan. 2 Paid $45,000 legal costs to successfully defend the patent against infringement by another company. Jan June Developed a new product, incurring $100,000 in research costs and $68,000 in development costs prior to technological feasibility. A patent was granted for the product on July 1. Its useful life is equal to its 20-year legal life. 4 Sept. 1 Paid $58,000 to an extremely large defensive lineman to appear in commercials advertising the companys products. The commercials will air in September and October. Oct. 1 Acquired a franchise for $100,000. The franchise has a useful life of 40 years