Prepare journal entry Cies) for on December 31, 2021 to record any resultant amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1 2 3 4 5. 6. e Textbook and Media List of Accounts Sateca Attempts: Dofused Submit A Questiul I UI 2 2.86 / 6 View Policies Show Attempt History Current Attempt in Progress 1 2 3. The following transactions involving intangible assets of Sandhill Corporation occurred on or near December 31, 2020. Minton paid Grand Company $404,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Sandhill is in business. Sandhill spent $678.000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. In January, 2021, Sandhill's application for a patent (#2 above) was granted. Legal and registration costs incurred were $201,600. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. Sandhill incurred $179,200 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2024 Sandhill incurred $460,800 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $277.200, is deemed worthless. Sandhill paid Sneed Laboratories $132,080 for research and development work performed by Sneed under contract for Sandhill. The benefits are expected to last six years. 4. 5. 6. (a) Your Answer Correct Answer Your answer is partially correct. Prepare journal entries for on the date of transaction. (Credit account titles are ottomatically indented when the amount is entered Do notIndent manually. If no entry is required, select "No entry for the account titles and enter for the amounts) Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Debit Credit No. Account Titles and Explanation 1. Franchises 404,000 Cash 404,000 N Research and Development Expense 678,000 Cash 678,000 3. Patents 201,600 Cash 201,600 4. Patents 179.200 Cash 179,200 S. Legal Fees Expense 460,800 Cash 460 800 (To record amount incurred.) Loss on Patent write-off 277,200 277,200 Patents (To record unamortized cost.) 6. Research and Development Expense 132,080 132.00 (b)