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The intangible assets section of Sappelt Company at December 31, 2015, is presented below. Patents ($66,000 cost less $6,600 amortization) $59,400 Franchises ($36,300 cost less
The intangible assets section of Sappelt Company at December 31, 2015, is presented below.
| Patents ($66,000 cost less $6,600 amortization) | $59,400 | |
| Franchises ($36,300 cost less $14,520 amortization) | 21,780 | |
| Total | $81,180 |
The patent was acquired in January 2015 and has a useful life of 10 years. The franchise was acquired in January 2012 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2016.
| Jan. 2 | Paid $35,010 legal costs to successfully defend the patent against infringement by another company. | |
| Jan.June | Developed a new product, incurring $138,190 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 $51,900 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 $113,000. The franchise has a useful life of 50 years. |
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