The following information concerns the intangible assets of Epstein Corporatio

The following information concerns the intangible assets of Epstein Corporation:

a. On June 30 2013 Epstein completed the acquisition of the Johnstone Corporation for $2120000 in cash. The fair value of the net identifiable assets of
Johnstone was $1800000.

b. Included in the assets purchased from Johnstone was a patent that was valued at $72800. 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 $187200. 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

2. Prepare the intangible asset section of the December 31 2013 balance sheet