The following information concerns the intangible assets of Epstein Corporation:
a. On June 30, 2013, Epstein completed the acquisition of the Johnstone Corporation for $2,120,000 in cash. The fair value of the net identifiable assets of Johnstone was $1,800,000.
b. Included in the assets purchased from Johnstone was a patent that was valued at $72,800. The remaining legal life of the patent was 12 years, but Epstein believes that the patent will only be useful for another seven years.
c. Epstein acquired a franchise on October 1, 2013, by paying an initial franchise fee of $187,200. The contractual life of the franchise is 9 years.
|
1. Prepare year end adjusting journal entries to recordamortizationexpense on the intangibles at December 31, 2013
|