Current Attempt in Progress The intangible assets section of Pharoah Company at December 31, 2020, is presented below. Patents ($75,000 cost less $7,500 amortization) $67.500 Franchises ($54,000 cost less $21.600 amortization) 32,400 Total $99,900 0.26/1 !!! The patent was acquired in January 2020 and has a useful life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2021. Jan. 2 Jan- June Sept. Oct. 1 1 Paid $36.000 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $140,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life. Paid $51,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a franchise for $116,000. The franchise has a useful life of 50 years.