The following information relates to the intangible assets of University Testing Services (UTS):
a. On January 1, 2021, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,200,000.
b. Included in the assets purchased from Heinrich was a patent valued at $82,250. 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 seven more years.
c. UTS acquired a franchise on July 1, 2021, by paying an initial franchise fee of $333,000. The contractual life of the franchise is 9 years.

Required:
1. Record amortization expense for the intangible assets at December 31, 2021.
2. Prepare the intangible asset section of the December 31, 2021, balance sheet.