pacart manufacturing paid cash to acquire the assets

Pacart Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with remaining years of legal life Goodwill $48,000 35,000 Required a. Compute the annual amortization expense for these items if applicable Answer is complete and correct. Patent $ 9,600 per year b. Record the purchase of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the preceding one. Pacart's fnancial condition just prior to the purchase of these assets is shown in the following statements model. The first event is recorded as an example in the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event (Enter any decreases to account balances and cash outflows with a minus sign.) Answer is complete but not entirely correct. PACART MANUFACTURING Horizontal Statement Model Balance Sheet Income Statement Event Assets Patent Cash Liabilities + Goodwill Equity Statement of Cash Flows Revenge Expense Net Income Acquisition Patent 94.000 + (83.000): 0 - 35 000 48.000 9.600 0 94.000 09 (1200) x 0 OC 0- 08 0+ 0 (83.000) OA 08 0 NA