The following information relates to the intangible assets of University Hero:

a. On January 1, 2015, University Hero completed the purchase of Whole Grain Foods for $800,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $625,000.

b. Included in the assets purchased from Whole grain Foods was a patent valued at $75,000. The original legal life of the patent was 20 years. There are still 8 years left on the patent, but Lettuce Express estimates the patent will be useful for only 3 more years.

c. University Hero acquired a franchise on July 1, 2015, by paying an initial franchise fee of $100,000. The contractual life of the franchise is 5 years.

Required:

1. Record amortization expense for the intangible assets at December 31, 2015.

2. Prepare the intangible asset section of the December 31, 2015, balance sheet.