Electronic Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were
Question:
Electronic Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items:
Patent with 4 remaining years of legal life .......$35,000
Goodwill ........................ 25,000
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Electronics financial condition just prior to the acquisition of these assets is shown in the following statements model:
Required
a. Compute the annual amortization expense for these items.
b. Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown above.
c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year1.
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...
Step by Step Answer:
a Patent 35000 4 8750 per year The goodwill is not a...View the full answer
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
