Cullumber $Co,$ organized $in2024,$ has set $up$ a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during $2025$ and $2026.$

Intangible Assets

$\frac{7}{1}\frac{?}{25}8-$year franchise, expiration date$\frac{6}{30}\frac{?}{33}$ $$60,000$

$\frac{10}{1}\frac{?}{25}$ Advance payment $on$ laboratory space $(2-$year lease$)$ $$25,800$

$\frac{12}{31}\frac{?}{25}$ Net loss for $2025$ Including state incorporation fee, $$1,500$

and related legal foes $of$ organizing, $$5,500(all$ fees incurred $in2025)$ $$13,600$

$\frac{1}{2}\frac{?}{26}$ Patent purchased $(10-$year life$)$ $$83,800$

$\frac{3}{1}\frac{?}{26}$ Cost $of$ developing a secret formula $(indefinite$ tire$)$ $$81,000$

$\frac{4}{1}\frac{?}{26}$ Goodwill purchased $(indefinite$ fife$)$ $$277,400$

$\frac{6}{1}\frac{?}{26}$ Legal fee for successful defense $of$ patent purchased above $$13,800$

$\frac{9}{1}\frac{?}{26}$ Research and development costs $$155,000$

Prepare the necessary entries $to$ clear the Intangible Assets account and $to$ set $up$ separate accounts for distinct types $of$ intangibles. Make the entries $asof$ December $31,2026,$ recording any necessary amortization. $(Ignore$ income tax effects.$)$

$(Credit$ account titles are automatically indented when amount $is$ entered. $Do$ not indent manually $ifno$ entry $is$ required, select. $"No$ Entry" for the account titles and enter $O$ for the arounts. List all debiz entries before credit entries.$)$

Account Tiles and Explanation

Debit

Credit

$8$ total accounts for journal entries for both debit and credit $(To$ clear the Intangible Assets$)$

$3$ total accounts for journal entries for both debit and credit $(To$ record current amount for Franchises$)$

$3$ total accounts for journal entries for both debit and creditTo record current amount for Rents