Problem 7-6A (Algo) Record amortization and prepare the intangible assets section (LO7-5) The following information...
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Problem 7-6A (Algo) Record amortization and prepare the intangible assets section (LO7-5) The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,102,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,800,000. b. Included in the assets purchased from Heinrich was a patent valued at $102,150. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only nine more years. c. UTS acquired a franchise on July 1,2024 , by paying an initial franchise fee of $283,200. The contractual life of the franchise is 8 years. Required: 1. Record amortization expense for the intangible assets at December 31, 2024. 2. Prepare the intangible asset section of the December 31, 2024, balance sheet. Complete this question by entering your answers in the tabs below. Record amortization expense for the intangible assets at December 31, 2024. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,102,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,800,000. Record amortization of goodwill. Note: Enter debits before credits. Journal entry worksheet Included in the assets purchased from Heinrich was a patent valued at $102,150. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only nine more years. Record amortization of the patent. Note: Enter debits before credits. Journal entry worksheet UTS acquired a franchise on July 1,2024 , by paying an initial franchise fee of $283,200. The contractual life of the franchise is 8 years. Record amortization of the franchise rights. Note: Enter debits before credits. \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ UNIVERSITY TESTING SERVICES } \\ Balance Sheet \\ \hline \multicolumn{2}{|c|}{ December 31, 2024 } \\ \hline \multicolumn{2}{|c|}{ (Intangible Assets Section) } \\ \hline Intangible Assets & \\ \hline \multicolumn{2}{|c|}{} \\ \hline \multicolumn{2}{|c|}{} \\ \hline Total intangible assets & $ \\ \hline \end{tabular}
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Problem 7-6A (Algo) Record amortization and prepare the intangible assets section (LO7-5) The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,102,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,800,000. b. Included in the assets purchased from Heinrich was a patent valued at $102,150. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only nine more years. c. UTS acquired a franchise on July 1,2024 , by paying an initial franchise fee of $283,200. The contractual life of the franchise is 8 years. Required: 1. Record amortization expense for the intangible assets at December 31, 2024. 2. Prepare the intangible asset section of the December 31, 2024, balance sheet. Complete this question by entering your answers in the tabs below. Record amortization expense for the intangible assets at December 31, 2024. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,102,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,800,000. Record amortization of goodwill. Note: Enter debits before credits. Journal entry worksheet Included in the assets purchased from Heinrich was a patent valued at $102,150. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only nine more years. Record amortization of the patent. Note: Enter debits before credits. Journal entry worksheet UTS acquired a franchise on July 1,2024 , by paying an initial franchise fee of $283,200. The contractual life of the franchise is 8 years. Record amortization of the franchise rights. Note: Enter debits before credits. \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ UNIVERSITY TESTING SERVICES } \\ Balance Sheet \\ \hline \multicolumn{2}{|c|}{ December 31, 2024 } \\ \hline \multicolumn{2}{|c|}{ (Intangible Assets Section) } \\ \hline Intangible Assets & \\ \hline \multicolumn{2}{|c|}{} \\ \hline \multicolumn{2}{|c|}{} \\ \hline Total intangible assets & $ \\ \hline \end{tabular} 