The intangible assets section of Sarasota Company at December 31, 2022, is presented here. Patents ($74,000 cost less $7,400 amortization) $66,600 Franchises ($39,000 cost less $15,600 amortization) 23,400 Total $90,000 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 $38,700 legal costs to successfully defend the patent against infringement by another company. Sept. 1 Paid $54,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. Oct. 1 Acquired a franchise for $111,400. The franchise has a useful life of 50 years. Nov.- Dec. Developed a new product, incurring $141,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. Date Account Titles and Explanation Debit Credit Jan. 2 Patents 38700 Cash 38700 Sept. 1 Oct. 1 >