Collins Company, organized in 1996, has the following transactions related to intangible assets.

\section*{Instructions}
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the entries as of December 31, 1996, recording any necessary amortization and indicating what the balances should be on December 31, 1996

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1/2/96 4/1/96 Purchased patent (7-year life) $350,000 Goodwill purchased (indefinite life) 360,000 7/1/96 9/1/96 10-year franchise; expiration date 7/1/2006 450,000 Research and development costs 185,000