FINANCIAL ACCOUNTING
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Transcribed Image Text:Impaired Goodwill and Amortization of Patent
On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, It was estimated that goodwill of
$6,000,000 was impaired.
a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank.
April 1
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. If an amount box does not require an entry, leave it blank.
Dec. 31
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
00
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- Troy Aikman Corporation purchased a patent from Salmon Company on Jaunary 1, 2017, for $54,000. The patent has a remaining legal life of 16 years Troy Aikman feels the patent will be useful for 10 years. Prepare Troy Aikmans Journal entry to record the amortization of the patent in 2017 O Patent Expense $5.400 Cash $5.400 O Patent Expense $5 400 Patent $5.400 O Patent $5,400 Patent Expense $5,400 O None of the Abovearrow_forwardDon't give answer in image formatarrow_forwardOn December 31, Chase Rock Company estimated that a goodwill of $80,000 was impaired. In addition, on June 1, Chase Rock acquired a patent with an estimated useful life of 10 years for $262,000. Required: Journalize the adjusting entry on December 31, for the impaired goodwill. Journalize the adjusting entry on December 31, for the amortization of the patent rights.arrow_forward
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