Impaired Goodwill and Amortization of Patent

a$.$ Record the acquisition of patent. If an amount box does not require an entry, leave it blank.

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V Check My Work

Recall that goodwill is not amortized because its useful life is indefinite.

Dec. $31$ Amortization Expense$-$Patents $$

Depreciation Expense $x$

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$$ Check My Work

A separate contra asset account is usually not used for intangible assets. Pay close attention to the date of purchase.

c$.$ Journalize the adjusting entry on December $31$ for the impaired goodwill. If an amount box does not require an entry, leave it blank.

Dec. $31$ Amortization Expense $x$

Depletion Expense $x$

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T Check My Work

Goodwill is not amortized like other intangible assets. If Goodwill is impaired, a loss should be recorded.

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$$ Check My Work

Partially correct