The intangible assets section of Sappelt Company at December 31, 2017, is presented below.

Patents ($77,000cost less $7,700amortization)$69,300Franchises ($45,000cost less $18,000amortization)27,000Total$96,300

The patent was acquired in January 2017 and has a useful life of10years. The franchise was acquired in January 2014 and also has a useful life of10years. The following cash transactions may have affected intangible assets during 2018.

Jan. 2Paid $18,000legal costs to successfully defend the patent against infringement by another company.Jan.-JuneDeveloped a new product, incurring $145,000in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life.Sept. 1Paid $46,000to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October.Oct. 1Acquired a franchise for $130,000. The franchise has a useful life of50years.