Testbank Multiple Choice Question 92

Carla Vista Corporation purchased a patent for $145500 on September 1, 2019. It had a useful life of 10 years. On January 1, 2021, Carla Vista spent $40000 to successfully defend the patent in a lawsuit. Carla Vista feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2021?

$25220.

$33220.

$31280.

$34190.

Testbank Multiple Choice Question 109

Wildhorse Corporation acquired End-of-the-World Products on January 1, 2020 for $6250000, and recorded goodwill of $1170000 as a result of that purchase. At December 31, 2021, the End-of-the-World Products Division had a fair value of $4580000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5290000 at that time. What amount of loss on impairment of goodwill should Wildhorse record in 2021?

$710000

$1670000

$960000

$0