On July 1, 2022, LCorporation by paying $218,400 and issuing a note payable of $545,000 to Michelle Lortez of Ship Bottom Corporation. At July 1, 2022, the balance sheet of the Corporation was as follows:

Cash 158,800 Receivables 87,000 Inventory 64,000 Land 37,700 Buildings (net) 56,250 Equipment (net) 62,500 Copyrights 12,500 Trademarks 5,900 $ 484,650

Accounts payable 157,400 Stockholders' equity 327,250 $ 484,650

The recorded amounts all approximate current values except for land (fair value of $100,000), inventory (fair value of $164,000) and trademarks (fair value $25,000) (a) Prepare the July 1 entry for Lay Corporation to record the purchase of Ship Bottom Corporation based on the facts provided above. (b) Prepare the December 31 entry for Lay Corporation to record amortization of intangibles. The copyrights had an estimated useful life of 5 years and a residual value of $4,600. The trademarks had an estimated useful life of 3 years and a residual value of $1,750.