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Reichenbach Co., organized in 2009

Price: $2.50

P12-1 (Correct Intangible Asset Account) Reichenbach Co., organized in 2011, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2012 and 2013.

7/1/12 8-year franchise; expiration date 6/30/19  $48,000
10/1/12 Advance payment on laboratory space (2-year lease)  24,000
12/31/12 Net loss for 2011 including state incorporation fee, $1,000, 
  and related legal fees of organizing, $5,000 (all fees 
  incurred in 2011)  16,000
1/2/13 Patent purchased (10-year life)  84,000
3/1/13 Cost of developing a secret formula (indefinite life)  75,000
4/1/13 Goodwill purchased (indefinite life)  278,400
6/1/13 Legal fee for successful defense of patent purchased above  12,650
9/1/13 Research and development costs  160,000

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (List multiple deb/credit entries from largest to smaller amount, e.g. 10,5, 2)

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