Reference no: EM132591557

Question - The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2017.

1. Minton paid Grand Company $400,000 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, 2018, Minton's application for a patent (#2 above) was granted. Legal and registration costs incurred were $210,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years.

4. Minton incurred $160,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2021.

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.

Part 1 - What are the journal entries for on the date of transaction?

Part 2 - What are the journal entries for on December 31, 2018 to record any resultant amortization?