(Accounting for Goodwill) On July 1, 2003, Brigham Corporation purchased Young Company by paying $250,000 cash and issuing a $100,000 note payable to Steve Young. At July 1, 2003, the balance sheet of Young Company was as follows

The recorded amounts all approximate current values except for land (worth $60,000), inventory (worth $125,000), and trademarks (worth $15,000).
Instructions

(a) Prepare the July 1 entry for Brigham Corporation to record the purchase.

(b) Prepare the December 31 entry for Brigham Corporation to record amortization of intangibles.
The trademark has an estimated useful life of 4 years with a residual value of $3,000.

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Cash $ 50,000 Receivables 90,000 Accounts payable Stockholders' equity $200,000 Inventory 100,000 235,000 $435,000 Land 40,000 Buildings (net) 75,000 Equipment (net) 70,000 Trademarks 10,000 $435,000