On July 1, 2020, Brigham Corporation purchased Young Company by paying $250,000cash and issuing a $100,000note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.

Cash $50,000 Accounts payable $200,000

Accounts receivable 90,000Stockholders' equity 235,000

Inventory 100,000 $435,000

Land 40,000

Buildings (net) 75,000

Equipment (net) 70,000

Trademarks 10,000

$435,000

The recorded amounts all approximate current values except for land (fair value of $60,000), inventory (fair value of $125,000), and trademarks (fair value of $15,000).

Prepare the July 1 entry for Brigham Corporation to record the purchase.

Account Titles and Explanation Debit Credit

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(I)

(j)

(k)

Prepare the December 31 entry for Brigham Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,000

Account Titles and Explanation Debit Credit

(a)

(b)