Exercise $11-19($Algo$)$ Amortization $[$LO$11-4,11-5]$

Janes Company provided the following information on intangible assets:

A patent was purchased from the Lou Company for $$750,000$ on January $1,2019.$ Janes estimated the remaining useful life of the patent to be $10$ years. The patent was carried on Lou$$s accounting records at a net book value of $$360,000$ when Lou sold it to Janes.

During $2021,$ a franchise was purchased from the Rink Company for $$510,000.$ The contractual life of the franchise is $10$ years and Janes records a full year of amortization in the year of purchase.

Janes incurred research and development costs in $2021$ as follows:

Materials and supplies $ $141,000$

Personnel $181,000$

Indirect costs $61,000$

Total $ $383,000$

Effective January $1,2021,$ based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.

Required:

$1.$ Prepare the entries necessary for years $2019$ through $2021$ to reflect the above information.

$2.$ Prepare a schedule showing the intangible asset section of Janes$$s December $31,2021,$ balance sheet.