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Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items. Patent with 4 remaining years

Dynamo 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 $33,800
Goodwill 43,500

Dynamos financial condition just prior to the acquisition of these assets is shown in the following statements model.

Balance Sheet Income Statement
Assets = Liabilities + Stockholders Equity Revenue Expenses = Net Income Statement of Cash Flows
Cash + Patent + Goodwill
95,900 + NA + NA = NA + 95,900 NA NA = NA NA

Required

Compute the annual amortization expense for these items.

Show the acquisition of the intangible assets and the related amortization expense for Year 1 in a horizontal statements model.

Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1.

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