The intangible assets section of Sappelt Company at December 31, 2022, is presented here.

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 $27,000 legal costs to successfully defend the patent against infringement by another company. Sept. 1 Paid $S0,000 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 $140,000. The franchise has a useful life of SO years. Nov.-Dec. Developed a new product, incurring $140,000 in research and development costs during December. A patent was granted for the product on January 1, 2024.

Instructions.
a. Prepare journal entries to record the transactions.
b. Prepare journal entries to record the 2023 amortization expense for intangible assets.
c. Prepare the intangible assets section of the balance sheet at December 31, 2023.

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