Selected accounts of the Brecha Company are listed below. On January 1, 20X1, the only intangible asset in the companys accounts was Goodwill. This was recorded seven years ago when the company acquired another company and paid $350,000 more than the fair market value of the net identifiable tangible assets acquired. For two years, the company amortized the costs on the basis of a 40-year life, charging a total of $16,800 ($8,400 each year) to an account called Amortization ExpenseGoodwill. However, no amortization of goodwill has been recorded in the last six years. Transactions and events that took place at the company during 20X1 are given below.

Record the amortization of the product formula. Note: Enter debits before credits. Record the labor and supplies used. Note: Enter debits before credits. TRANSACTIONS AND OTHER INFORMATION a. On May 10,201, the company paid $180,000 to purchase a product formula. The formula is expected to have a useful life of eight years. b. On July 5 , the company paid $590,000 for a patent having a useful life of ten years. c. On September 22, the company purchased a unique computer program for $230,000. This program has an estimated useful life of five years. d. During the year, the company recorded various cash expenditures of $205,000 for labor and supplies used in its research department. (Date entry December 31.) e. At the end of 20X1, the company reviewed the goodwill shown in the accounts. Based on the profitability of activities acquired in purchasing the other business, the owners of the business think the goodwill has a value of $270,000 and should be of benefit for many more years. Required: 1. Record the transactions for 201. 2. Record amortization of the intangible assets, where appropriate, for the year ended December 31, 201. 3. Record impairment of assets, where appropriate, on December 31, 201. Analyze: Based on the transactions above, what is the total net book value of Brecha Company's intangible assets on December 31, 20X1? Record the amortization of the computer program. Note: Enter debits before credits. Net book value Record impairment of assets where appropriate. Note: Enter debits before credits. Record the amortization of the patent. Note: Enter debits before credits. Record the purchase of the patent. Note: Enter debits before credits. Journal entry worksheet Record the purchase of the product formula. Note: Enter debits before credits. Record the purchase of the computer program. Note: Enter debits before credits