On December 31, 2019, Warren Companys Intangible Assets account reflects two assets 1. Goodwill , $145,000. This

Question:

On December 31, 2019, Warren Company’s Intangible Assets account reflects two assets

1. Goodwill, $145,000. This amount was recorded in December 2018 as part of the cost of acquiring an existing business. It represents the excess of the total purchase price over the value of net identifiable assets. Warren has studied carefully the operations and concluded that the fair value of goodwill on December 31, 2019, is $110,000 and that benefits should exist for at least another 10 years.
2. Patent, $299,000. The patent was purchased on January 2018 for $322,000, when it had a remaining legal life of 14 years. On December 31, 2018, $23,000 of cost was amortized. On December 31, 2019, Warren estimates that the patent will be useful for only another 9 years (through December 31, 2028). However, it is estimated that the patent still has a value to the company of over $310,000.

For each of the intangibles—goodwill and patent—explain what entry, if any, is necessary at the end of 2019 to adjust the accounts.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Intangible Assets
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...