Janes Company provided the following information on intangible assets:

A patent was purchased from the Lou Company for $1,550,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $520,000 when Lou sold it to Janes.
During 2021, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase.
Janes incurred research and development costs in 2021 as follows:
Materials and supplies $ 157,000
Personnel 197,000
Indirect costs 77,000
Total $ 431,000
Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.

Required:
1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information.

1

Record the purchase of a patent.

2

Record amortization on the patent.

3

Record amortization on the patent.

4

Record the purchase of a franchise.

5

Record amortization of franchise.

6

Record research and development expenses.

7

Record amortization on the patent after change in useful life.