Sheridan Co., organized in 2017, provided you with the following information.

1.		Purchased a license for $ 28,960 on July 1, 2017. The license gives Sheridan exclusive rights to sell its services in the tri-state region and will expire on July 1, 2025.
2.		Purchased a patent on January 2, 2018, for $ 76,600. It is estimated to have a 5-year life.
3.		Costs incurred to develop an exclusive Internet connection process as of June 1, 2018, were $ 92,600. The process has an indefinite life.
4.		On April 1, 2018, Sheridan Co. purchased a diode manufacturer for $ 696,200. Goodwill recorded in the transaction was $ 121,800.
5.		On July 1, 2018, legal fees for successful defense of the patent purchased on January 2, 2018, were $ 15,570.
6.		Research and development costs incurred as of September 1, 2018, were $ 92,600.

Partially correct answer iconYour answer is partially correct.

Prepare the journal entries to record all the entries related to the patent during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction datechoose a transaction date January 2, 2018July 1, 2018December 31, 2018	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction datechoose a transaction date January 2, 2018July 1, 2018December 31, 2018	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction datechoose a transaction date January 2, 2018July 1, 2018December 31, 2018	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Incorrect answer iconYour answer is incorrect.

At December 31, 2018, an impairment test is performed on the license purchased in 2017. It is estimated that the net cash flows to be received from the license will be $22,400, and its fair value is $ 18,200. Compute the amount of impairment, if any, to be recorded on December 31, 2018.

select an optionselect an option ProfitLoss on impairment

$ enter a dollar amount

eTextbook and Media

List of Accounts

Incorrect answer iconYour answer is incorrect.

What is the amount to be reported for intangible assets on the balance sheet at December 31, 2017? At December 31, 2018?

		December 31, 2017		December 31, 2018
Amount to be reported		$ enter a dollar amount		$ enter a dollar amount