Solution for QID #882: The following information relates to the intangible assets o | StudyHelpMe

The following information relates to the intangible assets of University Testing Services (UTS):a.On January 1, 2015, UTS completed the purchase of Heinrich Corporation for $2,898,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,600,000.b.Included in the assets purchased from Heinrich was a patent valued at $93,200. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only eight more years.c.UTS acquired a franchises on July 1, 2015, by paying an initial franchises fee of $346,000. The contractual life of the franchises is 10 years.Prepare the intangible asset section of the December 31, 2015, balance sheet.