Barkley Corp. obtained a trade name in January 2016, incurring legal costs of $82,000. The company amortizes the trade name over 8 years. Barkley successfully defended its trade name in January 2017, incurring $19,000 in legal fees. At the beginning of 2018, based on new marketing research, Barkley determines that the fair value of the trade name is $60,000. Estimated future net cash flows from the trade name are $62,000 on January 4, 2018.

Instructions (25 points)

Prepare the necessary journal entries for the years ending December 31, 2016, 2017, and 2018. Show all computations.