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Pharoah Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Purchased a patent with an estimated useful

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Pharoah Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Purchased a patent with an estimated useful life of five years for $40,870. The company that sold the patent to Collins registered the patent Jan. 2 10 years ago Apr. 1 Acquired another company and recorded goodwill of $323,600 as part of the purchase. July 1 Acquired a franchise for $253,600. The franchise agreement is rerewable without charge and not expected to expire. Sept. 1 incurred research costs of $145,000. Incurred development costs of $52,800. A marketable product has been identified and resources have been secured so that production will 30 start next year. Dec. 31 Recorded annual amortization. 31 Tested the intangible assets for impairment. Recoverable amounts exceeded carrying amounts for all intangible assets. Also tested goodwill and determined that it had a recoverable amount of $255,740. Part 1 Prepare the entries to record the above transactions. Assume all costs incurred during January through September were incurred for cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, s. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit accounts are automatically rented when the amount t entries in the order presented in the problem) o underwenden .com Date Account Titles and Explanation Debit Credit (To record amortization expense) (To record amortization expense) (To record goodwill impairment) Part 2 Show the presentation of the intangible assets and goodwill on the statement of financial position at December 31 PHAROAH LTD. Statement of Financial Position (Partial) Assets

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