1. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $2,694,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,400,000.
2. Included in the assets purchased from Heinrich was a patent valued at $80,150. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only 7 more years.
3. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $304,200. The contractual life of the franchise is 9 year
5. Compute goodwill arising from the purchase of Heinrich Corporation.
6. Determine the amortization expense for each of the intangible assets.
7. Prepare the intangible asset section of the December 31, 2024, balance sheet.

1. Compute goodwill arising from the purchase of Heinrich Corporation. 2. Determine the amortization expense for each of the intangible assets.

1. Goodwill
2a. Goodwill amortization
2b. Patent amortization
2c. Franchise amortization

Prepare the intangible asset section of the December 31, 2024, balance sheet.

UNIVERSITY TESTING SERVICES
Balance Sheet
December 31, 2024
(Intangible Assets Section)
Intangible Assets
Total intangible assets