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	$38,800
Goodwill	41,200

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
91,200	+	NA	+	NA	=	NA	+	91,200	NA		NA	=	NA	NA

Required

a) Compute the annual amortization expense for these items.

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

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

Compute the annual amortization expense for these items. and cash outflows with a minus sign. Round final answers to the nearest whole dollar amount.) Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar amount.) Journal entry worksheet Record cash paid to acquire the assets of an existing company. Note: Enter debits before credits. Compute the annual amortization expense for these items. and cash outflows with a minus sign. Round final answers to the nearest whole dollar amount.) Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar amount.) Journal entry worksheet Record cash paid to acquire the assets of an existing company. Note: Enter debits before credits