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ful economic life of 12 years was acquired for $72,000. In addition, paired. amount box does not require an entry, leave it blank. 72,000

ful economic life of 12 years was acquired for $72,000. In addition, paired. amount box does not require an entry, leave it blank. 72,000

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 19E
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b.  Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $72,000. In addition, on December 31, it was estimated that goodwill of $35,000 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents 72,000 72,000 Cash Feedback ✓ Check My Work Recall that goodwill is not amortized because its useful life is indefinite. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31 Amortization Expense-Patents 0 ✓ X Patents 0 Feedback Check My Work A separate contra asset account is usually not used for intangible assets. Pay close attention to the date of purchase. c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank. Dec. 31 Loss from Impaired Goodwill 35,000 Goodwill 35,000 ✓
Transcribed Image Text:On April 1, a patent with an estimated useful economic life of 12 years was acquired for $72,000. In addition, on December 31, it was estimated that goodwill of $35,000 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents 72,000 72,000 Cash Feedback ✓ Check My Work Recall that goodwill is not amortized because its useful life is indefinite. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31 Amortization Expense-Patents 0 ✓ X Patents 0 Feedback Check My Work A separate contra asset account is usually not used for intangible assets. Pay close attention to the date of purchase. c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank. Dec. 31 Loss from Impaired Goodwill 35,000 Goodwill 35,000 ✓
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