Questions - Answer any FOUR(4 x 5 marks - 20 marks) Q1 The intangible assets section of Powerdlige Company at Dec.31, 2018 is presented below: Equipment $ 4,800,000 Less: Accumulated Depreciation 480,000 $4,320,000 Intangible assets Patent ($120,000 cost less S12.000 amortization) S108,000 Copyright (572,000 cost less $28,800 amortization) Total 43,200 151.200 54.471.200 Equipment is acquired in January 2018 and its useful life is 10 years. The patent was acquired in January 2017 and has a useful life of 10 years. The copyright was acquired in January 2015 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2019. Jan2 Paid S180,000 legal costs to successfully defend the patent against infringement by another company Jan - June Developed a new product, incurring $220,000 in research and development costs A patent was granted for the product on July 1. Its useful life is equal to its legal life April 4 Purch Aug.1 Sept.1 Purchase additional equipment for $360,000 to be used for 5 years.(straight line depreciation method used). Payment for equipment S156,0005 year life) Paid $100,000 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 copyright for $200,000. The copyright has a useful life of 50 years Oct 31 Instructions: (a) Prepare journal entries to record the transactions above. (b) Prepare adjusting journal entries to record the 2019 amortization expense and depreciation expense