Reference no: EM132026924

Question - The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2014.

1. Minton paid Grand Company $500,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Minton is in business.

2. Minton spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful.

3. In January, 2015, Minton's application for a patent (#2 above) was granted. Legal and registration costs incurred were $180,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years.

4. Minton incurred $140,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2018.

5. Minton incurred $480,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $252,000, is deemed worthless.

6. Minton paid Sneed Laboratories $104,000 for research and development work performed by Sneed under contract for Minton. The benefits are expected to last six years.

Prepare journal entry (ies) for on the date of transaction.