The following information relates to the intangible assets ofUniversity Testing Services (UTS): a. On...

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The following information relates to the intangible assets ofUniversity Testing Services (UTS): a. On January 1, 2018, UTScompleted the purchase of Heinrich Corporation for $3,510,000 incash. The fair value of the net identifiable assets of Heinrich was$3,200,000. b. Included in the assets purchased from Heinrich was apatent valued at $82,250. The original legal life of the patent was20 years; there are 12 years remaining, but UTS believes the patentwill be useful for only seven more years. c. UTS acquired afranchise on July 1, 2018, by paying an initial franchise fee of$333,000. The contractual life of the franchise is 9 years. 1.Record amortization expense for the intangible assets at December31, 2018. 2. Prepare the intangible asset section of the December31, 2018, balance sheet.

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a. Purchase price Paid $	3,510,000
Fair Value of Identifiable Assets $	3,200,000
Goodwill $	310,000

b. Patent $	82,250
Estimated useful life Years	7
Yearly amortisation $	11,750

c. Franchise $	333,000
Life of Franchise Years	9
Yearly Amortisation $	37,000
Amortisation for 2018 ( 6 months)$	18,500

31/12/2018	Amortisation Expense	30,250
	Accumulated Amortisation- Franchise		18,500
	Accumulated Amortisation- Patent		11,750

University Testing Services
Balance sheet
December 31,2018

Intangible assets	$
Goodwill	310,000
Patent	70,500
Franchise	314,500

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In: AccountingThe following information relates to the intangible assets ofUniversity Testing Services (UTS): a. On January...The following information relates to the intangible assets ofUniversity Testing Services (UTS): a. On January 1, 2018, UTScompleted the purchase of Heinrich Corporation for $3,510,000 incash. The fair value of the net identifiable assets of Heinrich was$3,200,000. b. Included in the assets purchased from Heinrich was apatent valued at $82,250. The original legal life of the patent was20 years; there are 12 years remaining, but UTS believes the patentwill be useful for only seven more years. c. UTS acquired afranchise on July 1, 2018, by paying an initial franchise fee of$333,000. The contractual life of the franchise is 9 years. 1.Record amortization expense for the intangible assets at December31, 2018. 2. Prepare the intangible asset section of the December31, 2018, balance sheet.