• On June 30. 2024. Baez completed the acauisition of the Johnstone Corporation for $1,640,000 in cash. The fair value of the Mer onrirale ascots or.onnsione was xb $1,400,000
• Included in the assets purchased from Johnstone was a patent that was valued at $79,200. The remainina legal life of the patent was 14 years, but Baez believes that the patent will only be useful for another seven years
• Baez acquired a francise on october 2024, by paying an initial francise fee of $193,600. Tne contractual lite or tne franchise is 11 vears.

1. Prepare year-end adjusting journal entries to recora amortization expense on the intangibles at december 31, 2024

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