Exercise 8-21A Computing and recording the amortization of intangibles LO 8-10, 8-11 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 Goodwill $41,900 43,600 Dynamo's financial condition just prior to the acquisition of these assets is shown in the following statements model: Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow Cash 99,200 + + Assets Patent NA + + Goodwill NA NA + 99,200 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 like the one shown earlier. c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the annual amortization expense for these items. Patent per year Required A Required B Required c Show the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown earlier. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for Net Change and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Show less DYNAMO MANUFACTURING Statements Model Assets Liabilities : Equity Revenue Expenses Net Income Cash Flow Cash Patent Goodwill 99,200 + 99,200 NA = Acquisition Amortization Tor year 1. required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X > A Record cash paid to acquire the assets of an existing company. B Record amortization expenses for patents. Credit Note : = journal entry has been entered Record entry Clear entry View general journal