a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,153,000 in cash. The fair value of the net Identifiable assets of Heinrich was $2,850,000. b. Included in the assets purchased from Heinrich was a patent valued at $91,200. 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 eight more years. c. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $356,000. The contractual life of the franchise Is 10 years. Required: 1. Record amortization expense for the Intangible assets at December 31, 2024. 2. Prepare the intangible asset section of the December 31, 2024, balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the intangible asset section of the December 31, 2024, balance sheet.

a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,153,000 in cash. The fair value of the net Identifiable assets of Heinrich was $2,850,000. b. Included in the assets purchased from Heinrich was a patent valued at $91,200. 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 eight more years. c. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $356,000. The contractual life of the franchise Is 10 years. Required: 1. Record amortization expense for the Intangible assets at December 31, 2024. 2. Prepare the intangible asset section of the December 31, 2024, balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the intangible asset section of the December 31, 2024, balance sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Required 1 Required 2
Prepare the intangible asset section of the December 31, 2024, balance sheet.
UNIVERSITY TESTING SERVICES
Balance Sheet
December 31, 2024
(Intangible Assets Section)
Intangible Assets
Goodwill
Patents
Franchises
Total intangible
Is
$
308,000 X
93,200 X
274,500
675,700
< Required 1
Required 2 >

a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,153,000 in cash. The fair value of the net
Identifiable assets of Heinrich was $2,850,000.
b. Included in the assets purchased from Heinrich was a patent valued at $91,200. 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 eight more years.
c. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $356,000. The contractual life of the franchise is 10
years.
Required:
1. Record amortization expense for the Intangible assets at December 31, 2024.
2. Prepare the intangible asset section of the December 31, 2024, balance sheet.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the intangible asset section of the December 31, 2024, balance sheet.

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