Problem 3

On October 1, 2023, Morgan, Inc., acquired all of the outstanding common stock of Pathways, Inc., for $100 million. In addition to tangible assets, Morgan recorded the following assets as a result of the acquisition:

Patent $6 million

Developed technology 3 million

In-process research & development 2 million

Goodwill 7 million

Morgan's policy is to amortize intangible assets using the straight-line method, no residual value and a six-year useful life.

Required:

Record the journal entry to record amortization of the above intangible assets.