Business, 06.05.2021 16:10 jermainedwards

The following information concerns the intangible assets of Epstein Corporation: a. On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $2,000,000 in cash. The fair value of the net identifiable assets of Johnstone was $1,700,000.
b. Included in the assets purchased from Johnstone was a patent that was valued at $80,000. The remaining legal life of the patent was 13 years, but Epstein believes that the patent will only be useful for another eight years.
c. Epstein acquired a franchise on October 1, 2021, by paying an initial franchise fee of $200,000. The contractual life of the franchise is 10 years.

Required:
a. Prepare year-end adjusting journal entries to record amortization expense on the intangibles at December 31, 2011.
b. Prepare the intangible asset section of the December 31, 2011, balance sheet.

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The following information concerns the intangible assets of Epstein Corporation: a. On June 30, 20...

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