Nelson Company, organized in 2017, has these transactions related to intangible assets in that year: Jan. 2 Purchased a patent (5-year life) $325,000. Apr. 1 Goodwill purchased (indefinite life) $360,000. July 1 Acquired a 9-year franchise; expiration date July 1, 2026, $720,000. Sept. 1 Research and development costs $185,000.
1. Prepare the necessary entries to record these intangibles. All costs were for cash.
2. Make the entries as of December 31, 2017, recording any necessary amortization.