5.1. On January 1, 2011, Landon Company purchased a patent for R250, 000 to allow it to improve its product line. On July 1, 2011, Landon purchased another existing business in a nearby city for a total cost of R750, 000. The market value of the land, building, equipment, and other tangible assets was R550, 000. The excess R200, 000 was recorded as goodwill. Assuming Landon amortizes patents over a 20-year period, record the following: 1. The purchase of the patent on January 1, 2011. 2. The amortization of the patent at December 31, 2011. 3. Under what conditions would goodwill be amortized on the books of Landon?

5.1. On January 1, 2011, Landon Company purchased a patent for R250, 000 to allow it to improve its product line. On July 1, 2011, Landon purchased another existing business in a nearby city for a total cost of R750, 000. The market value of the land, building, equipment, and other tangible assets was R550, 000. The excess R200, 000 was recorded as goodwill. Assuming Landon amortizes patents over a 20-year period, record the following: 1. The purchase of the patent on January 1, 2011. 2. The amortization of the patent at December 31, 2011. 3. Under what conditions would goodwill be amortized on the books of Landon?

Name: 5.1. On January 1, 2011, Landon Company purchased a patent for R250,
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Description: 5.1. On January 1, 2011, Landon Company purchased a patent for R250, 000 to allow it to improve its product line. On July 1, 2011, Landon purchased another existing business iina nearby city for a total cost of R750, 000. The market value of the lan

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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