Barkley Corp. obtained a tradename in January $2024,$ incurring legal costs of $$72,000.$ The company amortizes the tradename over $8$ years using the straight$-$line method. Barkley successfully defended its tradename in January $2025,$ incurring $$19,600$ in legal fees. At the beginning of $2026,$ based on new marketing research, Barkley determines that the fair value of the tradename is $$60,000.$ Estimated future net cash flows from the tradename are $$64,000$ on January $4,2026.$

Instructions

Prepare the necessary journal entries for the years ending December $31,2024,2025,$ and $2026.$ Show all computations.