[The following information applies to the questions displayed below.]

The following information relates to the intangible assets of University Testing Services (UTS):

a. On January 1, 2018, UTS completed the purchase of Heinrich Corporation for $2,490,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,200,000. b. Included in the assets purchased from Heinrich was a patent valued at $101,250. 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 nine more years. c. UTS acquired a franchise on July 1, 2018, by paying an initial franchise fee of $264,000. The contractual life of the franchise is 8 years.

4.

value: 5.88 points

Required information

Required:

1. Record amortization expense for the intangible assets at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

References

eBook & Resources

General JournalDifficulty: 3 HardLearning Objective: 07-05 Calculate amortization of intangible assets.

Check my work

5.

value: 5.88 points

Required information

2. Prepare the intangible asset section of the December 31, 2018, balance sheet.