Question 11

Ahmad Corporation purcahsed a patent for $180000 on September 1, 2015. It had a useful life of 10 years. On January 1, 2017 Ahmad Spent $44000 to succesfully defend the patent in a lawsuit. Ahmad feels that as of that date the remaining useful life is 5 years. What amount should be reported for patent amoritsation expense for 2017.

Question 12

Haleem Company 12/31/2016 balance sheet reports assets of $2600000 and liabilities of $1000000. All of Haleem assets book values approximates their fair value, excepts for Land whcih has a fair value that is $150000 greater than its book value. On 12/31/2016 Imad Corporation paid $2700000 to acquire Haleem? What amount of goodwill should Imad record as a result of this purchase