On July $1,2025,$ Grouper Corporation purchased Young Company by paying $\backslash$$$253,500$ cash and issuing a $\backslash$$$139,000$ note payable to Steve Young. At July $1,2025,$ the balance sheet of Young Company was as follows.

The recorded amounts all approximate current values except for land $($fair value of $\backslash (\backslash$$ $64,300\backslash )),$ inventory $($fair value of $\backslash (\backslash$$ $127,000\backslash )),$ and trademarks $($fair value of $\backslash (\backslash$$ $16,880\backslash )).$

$($a$)$

$($b$)$

Your answer is partially correct.

Prepare the December $31$ entry for Grouper Corporation to record amortization of intangibles. The trademark has an estimated useful life of $4$ years with a residual value of $\backslash$$$3,520.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Credit

Amortization Expense

Trademarks