Webber Ltd. purchased the net assets of Sitter Inc. in January 2020 for $8,546,000. Appraisals indicated that the fair values of the assets purchased and liabilities assumed were as follows:

The patent acquired has 10 years remaining in its useful life, but Webber’s management determined that it would contribute to the generation of revenues for 8 years, after which it would be obsolete.

Required

a. Determine the amount of goodwill Webber acquired in the purchase.

b. Prepare the journal entry to record the amortization of the patent for 2020.

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$ 974,000 Inventory Accounts receivable Prepaid expenses Land $1,600,000 1,360,000 661,000 468,000 1,820,000 529,000 71,000 1,897,000 1,628,000 Patents Accounts payable Warranty provision Bank loan payable Equipment Building