65,JUU LEASEHOLD 26,000 IMRPOVEMENTS PREPAID EXPENSES 10,500 ORGANIZATION 29,000 EXPENSES GOODWILL 24,000 LEASING AGREEMENT 50,000 NO.1* LEASING AGREEMENT 49,000 NO.2* *An intangible asset representing the right to use a patent. The following information relates to accounts that may yet require adjustments: (prepare entries if needed for the following) 1. Patents for Sorenson's manufacturing process were purchased Jan. 1, 2010, at a co 68,000. An additional 17,000 was spent in Dec 2010 to improve machinery covere the patent and charged to the Patents account. The patents had the remaining long 17 years. 2. On Jan 3,2009, Sorenson purchased two licensing agreements; at that time they we believed to have unlimited useful lives. The balance in the Licensing Agreement N account included its purchase price of 48,000 and 2,000 in acquisition expenses. Licensing Agreement No. 2 also was purchased on January 3,2009, for 50,000, but been reduced by a credit of 1,000 for the advance collection of revenue from the agreement. 3. In December 2009, an explosion caused a permanent 60 percent reduction in the ex revenue-producing value of Licensing Agreement No. 1 and, in January 2010, a flo caused additional damage, which rendered the agreement worthless. 4. A study of Licensing Agreement No.2 made by Sorenson in January 2010 reveale its estimated remaining life expectancy was only 10 year as of January 1, 2010