1. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $2,745,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,450,000. Record amortization of goodwill.
2. Included in the assets purchased from Heinrich was a patent valued at $92,000. 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 eight more years. Record amortization of the patent.
3. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $340,000. The contractual life of the franchise is 10 years. Record amortization of the franchise rights.