The intangible assets section of Redeker Company at December 31, 2008, is presented below.

The patent was acquired in January 2008 and has a useful life of 10 years. The franchise was acquired in January 2005 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2009.

Instructions

(a) Prepare journal entries to record the transactions above.

(b) Prepare journal entries to record the 2009 amortization expense.

(c) Prepare the intangible assets section of the balance sheet at December 31, 2009.

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Patent ($70,000 cost less $7,000 amortization) Franchise ($48,000 cost less $19,200 amortization) Total $63,000 28,800 $91,800