On April $1,$ a patent with an estimated useful economic life of $12$ years was acquired for $$86,400.$ In addition, on December $31,$ it was estimated that goodwill of $$25,000$ was impaired.

Question Content Area

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

April $1$

Patents

Cash

Question Content Area

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. $31$

Amortization Expense$-$Patents

Patents

Question Content Area

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

Goodwill