Question: On June 3 0 , 2 0 2 4 , Baez completed the acquisition of the Johnstone Corporation for $ 2 , 1 8 0

 On June 30,2024, Baez completed the acquisition of the Johnstone Corporation for $2,180,000 in cash. The fair value of the net identifiable assets of Johnstone was $1,850,000.
Included in the assets purchased from Johnstone was a patent that was valued at $84,800. The remaining legal life of the patent was 13 years, but Baez believes that the patent will only be useful for another eight years.
Baez acquired a franchise on October 1,2024, by paying an initial franchise fee of $212,000. The contractual life of the franchise is 10 years.
Required:
Prepare year-end adjusting journal entries to record straight-line amortization expense of the intangibles at December 31,2024.
Prepare the intangible asset section of the December 31,2024, balance sheet.

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