Impaired Goodwill and Amortization of Patent

On April $1,$ a patent with an estimated useful economic life of $12$ years was acquired for $$57,600.$ In addition, on December $31,$ it was estimated that goodwill of $$55,000$ was impaired.

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

April $1$

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

b$.$ Journalize the adjusting entry on December $31$ for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.

Dec. $31\frac{\text{A}\text{m}\text{o}\text{r}\text{t}\text{i}\text{z}\text{a}\text{t}\text{i}\text{o}\text{n}\text{E}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}-\text{P}\text{a}\text{t}\text{e}\text{n}\text{t}\text{s}}{}$

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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. $31$ Loss from Impaired Goodwill