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.