The intangible assets section of Whitley Company at December 31, 2016, is presented below.

Patents (£100,000 cost less £10,000 amortization)...........................£ 90,000

Copyrights (£80,000 cost less £32,000 amortization)...........................48,000

Total.......................................................................................................£138,000

The patent was acquired in January 2016 and has a useful life of 10 years. The copyright was acquired in January 2013 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2017.

Jan. 2 Paid £48,600 legal costs to successfully defend the patent against infringement by another company.

Jan.-June Developed a new product, incurring £110,000 in research costs and £120,000 in development costs prior to technological feasibility. A patent was granted for the product on July 1. Its useful life is equal to its legal life.

Sept. 1 Paid £125,000 to an X-Games star to appear in commercials advertising the company's products. The commercials will air in September and October.

Oct. 1 Acquired a copyright for £192,000. The copyright has a useful life of 40 years.

Instructions

(a) Prepare journal entries to record the transactions above.

(b) Prepare journal entries to record the 2017 amortization expense for intangible assets.

(c) Prepare the intangible assets section of the statement of financial position at December 31, 2017.

(d) Prepare the note to the financials on Whitley's intangibles as of December 31, 2017.