On April 1, a patent with an estimated useful economic life of 12 years was acquired for $43,200. In addition, on December 31, it was estimated that goodwill of $35,500 was impaired.

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

April 1	Patents	fill in the blank c4f394fae000033_2	fill in the blank c4f394fae000033_3
	Cash	fill in the blank c4f394fae000033_5	fill in the blank c4f394fae000033_6

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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	Amortization Expense-Patents	fill in the blank 3ff43e0be00a021_2	fill in the blank 3ff43e0be00a021_3
	Patents	fill in the blank 3ff43e0be00a021_5	fill in the blank 3ff43e0be00a021_6

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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	fill in the blank c813a80b8052fd7_2	fill in the blank c813a80b8052fd7_3
	Goodwill	fill in the blank c813a80b8052fd7_5	fill in the blank c813a80b8052fd7_6