The following information concerns the intangible assets of Epstein Corporation:

1. On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $2,480,000 in cash. The fair value of the net identifiable assets of Johnstone was $2,100,000.
2. Included in the assets purchased from Johnstone was a patent that was valued at $81,200. The remaining legal life of the patent was 12 years, but Epstein believes that the patent will only be useful for another seven years.
3. Epstein acquired a franchise on October 1, 2021, by paying an initial franchise fee of $208,800. The contractual life of the franchise is 9 years.

Required:

1. Prepare year-end adjusting journal entries to record amortization expense on the intangibles at December 31, 2021. 2. Prepare the intangible asset section of the December 31, 2021, balance sheet.