Below is the Balance Sheet of Chain Link Corp as of July 1, 2021. Twin Power Corporation has agreed to purchase Chain Link for a cash price of $175,000. Twin Power and Chain Link agree that the fair value of Land is $45,000 and the fair value of Equipment is $89,000. The fair value of the Patents has been determined to be $40,000. All other balances are at fair value.

Chain Link Corporation
Balance Sheet
December 31, 2021
Assets			Liabilities
Cash	24,000		Accounts Payable	49,000
Accounts Receivable	62,000		Long-Term Notes Payable	100,000
Land	40,000		Total Liabilities	149,000
Equipment, net	82,000
Patents	38,000		Stockholders Equity
			Common Stock	70,000
			Retained Earnings	27,000
			Total Stockholders Equity	97,000
Total Assets	246,000		Total Liab & S/E	246,000

Required:

1. Prepare Twin Power's journal entry for the purchase of Chain Link Corp.

2. Prepare the December 31, 2021 entry for Amortization Expense. The useful life of the Patents is estimated to be 10 years. Any Goodwill is considered to have indefinite useful life.