problem: James Marshall Company, organized in 2006, has set up a single account for all intangible assets. The following data discloses the debit entries that have been recorded during 2007.
1/2/2007 Purchased patent [8 year life] $350,000
4/1/2007 Purchased goodwill [indefinite life] 360,000
7/1/2007 Purchased franchise with 10 year life; exp. Date 7/1/17 450,000
8/1/2007 Payment of copyright [5 year life] 156,000
9/1/2007 Research and development costs 215,000
Make necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Create entries as of December 31, 2007, recording any necessary Amortization & reflecting all balances accurately as of that date. [Use straight line amortization]