Question
These are selected transactions for Indigo Corporation: Jan. 1 Purchased a copyright for $210,000. The copyright has a useful life of6years and a remaining legal
These are selected transactions for Indigo Corporation:
| Jan. 1 | Purchased a copyright for $210,000. The copyright has a useful life of6years and a remaining legal life of30years. |
| Mar. 1 | Purchased a patent with an estimated useful life of5years and a legal life of24years for $71,400. |
| Sept. 1 | Purchased a small company and recorded goodwill of $152,450. Its useful life is indefinite. |
Prepare all adjusting entries at December 31 to record amortization required by the events.
| Date | Account Titles and Explanation | Debit | Credit |
| Dec.31 | |||
| (To record amortization of Copyrights) | |||
| Dec.31 | |||
| (To record amortization of Patents) | |||
| Dec.31 | |||
| (To record amortization of Goodwill) |
|
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Intermediate Accounting Volume 2
Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick
6th Edition
9780071338820
