1. On September 1, 2026, Cullumber acquired Ivanhoe Enterprises for a cash payment of $688,800. At the time of purchases, Ivanhoe's balance sheet showed assets of $512,600, and stockholders' equity of $310,800. The fair value of Ivanhoe's assets is estimated to be $814,800. Compute the amount of goodwill acquired by Cullumber.

Amount of goodwill $

=

2. Sunland Corporation purchased Carla Vista Company 3 years ago and at that time recorded goodwill of $662,400. The Division's net identifiable assets, including the goodwill, have a carrying amount of $1,104,000. The fair value of the division is estimated to be $1,012,000.

Prepare Sunland's journal entry, if necessary, to record the impairment of the goodwill.

Accounts Titles and Explanation	Debit	Credit

3. Blossom Corporation owns a patent that has a carrying amount of $540,000. Blossom expects future net cash flows from this patent to total $337,500. The fair value of the patent is $418,500.

Prepare the journal entry, if necessary, to record the loss on impairment.

Account Titles and Explanation	Debit	Credit

4. On January 1, 2022, Blossom Company purchased a copyright for $2468000, having an estimated useful life of 16 yeras. In January 2026, Blossom paid $351000 for legal fees in a successful defense of the copyright. If the straight-line method is used, copyright amortization expense for the year ended December 31, 2026, should be

a. $0

b. $176188.

c. $183500

d. $154250

5. In early January 2024, Ivanhoe Corporation applied for a patient, incurring legal cost of $107,000. In January 2025, Ivanhoe incurred $21,960 of legal fees in a successful defense of its patent.

a) Compute 2024 straight-line amortization, 12/31/24 carrying amount, 2025 amortization and 12/31/25 carrying amount if the company amortizes the patent over 10 years.

2024 amortization	$
12/31/24 carrying value	$
2025 amortization	$
12/31/25	$

6. Ivanhoe Corporation was organized in 2025 and began operations in 2026. The company provides consulting services for construction companies. The following costs were incurred before the start of the operations.

Attorney fees in connection with organizing the company	$20,200
Accounting fees in connection with organizing the company	4,000
Purchase of design equipment	7,000
Meetings of incorporators to discuss starup activities	3,040
State filing fees to incorporate	100

Compute the total amount of organization costs incurred by Ivanhoe Corporation.

Total organization costs $

=