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 Advertising Expense 54000 Cash 54000 Oct. 1 Franchises 111400 Cash 111400 Jan.- June Research and Development Expense 141000 Cash 141000 Date Account Titles and Explanation Debit Credit Dec. 31 Amortization Expense 11700 Patents 11700 (To record patents amortization) Dec. 31 Amortization Expense 4457 Franchises 4457 (To record franchise amortization) e Textbook and Media List of Accounts Attempts: 4 of 5 used Prepare the intangible assets section of the balance sheet at December 31, 2023. Sarasota Company Balance Sheet (Partial) December 31, 2023 Intangible Assets Patents $ Franchises Total Intangible Assets $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit