Intermediate accounting

On October 1, 2019, Hope Corporation purchased Happiness Company by paying 150,000 cash and issuing a 150,000 note payable. On October 1, 2019, the statement of financial position of Happiness Company was as follows Building fnet) 95,000 Equity 275,000 Equipment (net) 90,000 Accounts Payable 300,000 Copyrights 30,000 Land 60,000 Inventory 120,000 Accounts receivable 110,000 Cash 70,000 575.000 575,000 The recorded amounts all approximate current values except for land (fair value of 110,000), inventory (fair value of 145,000), and Copyrights (fair value of 35,000). Required: (a) Prepare the July 1 entry for Hope Corporation to record the purchase. (8 marks) (b) Prepare the December 31 entry for Hope Corporation to record amortization of intangibles, The Copyrights have an estimated useful life of 4 years with a residual value of 5,000 (2 marks)