$($LO$7-5)$

The following information relates to the intangible assets of Lettuce Express:

a$.$ On January $1,2024,$ Lettuce Express completed the purchase of Farmers Produce, Incorporated, for

$$1,590,000$ in cash. The fair value of the identifiable net assets of Farmers Produce was $$1,431,000.$

b$.$ Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce

valued at $$54,000.$ The original legal life of the patent was $20$ years. There are still $17$ years left on the

patent, but Lettuce Express estimates the patent will be useful for only $10$ more years.

c$.$ Lettuce Express acquired a franchise on July $1,2024,$ by paying an initial franchise fee of $$187,600.$ The

contractual life of the franchise is seven years.

Required:

Record amortization expense for the intangible assets at December $31,2024.$

Prepare the intangible asset section of the December $31,2024,$ balance sheet.