Question

Check my work 17 Required information Problem 7-6B Record amortization and prepare the intangible assets section (LO7-5) (The following information applies to the questions displayed below.) points The following information relates to the intangible assets of Lettuce Express: eBook Print a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,510,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,359,000. b. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $41,400. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 9 more years c. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $ 201,600. The contractual life of the franchise is eight years. References Problem 7-6B Part 1 Required: 1. Record amortization expense for the intangible assets at December 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

		Debit	Credit
a	NO journal entry required
b	Amortization expense	4600		=41400/9
	Patents		4600
c	Amortization expense	12600		=201600/8*6/12
	Franchises		12600