The Horstmeyer Corporation commenced operations early in 2013. A number of expenditures were made during 2013 that were debited to one account called intangible asset. A recap of the $644,000 balance in this account at the end of 2013 is as follows:

The total amount paid for the Stiltz Corp. stock was debited to this account. The fair values of Stiltz Corp.’s assets and liabilities on the date of the acquisition were as follows:
Receivables ............. $ 100,000
Equipment ............. 350,000
Patent ............... 150,000
Total assets ............. 600,000
Note payable assumed ........ (220,000)
Fair value of net assets ........ $ 380,000

Required:
Prepare the necessary journal entries to clear the intangible asset account and to setup

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Date Transaction Amount 2/3/13 3/1/13 Fire insuranc 3/15/13 4/30/13 6/15/13 9/30/13 Legal fee for successful defense of patent developed above 10/13/13 Entered into a 10-year franchise agreement with franchisor Various Advertising costs 11/30/13 Acquired all of the outstanding common stock of Stiltz Corp. State incorporation fees and legal costs related to organizing the corporation S 7,000 6,000 20,000 40,000 Legal fees for filing a patent on a new product resulting from an R&D project 3,000 12,000 40,000 16,000 500,000 $644,000 e premium for three-y ear period Purchased a copyright Research and development costs Total