mpaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $115,200. In addition, on December 31, it was estimated that goodwill of $48,500 was impair a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents ✓ 88 Cash Feedback ✓ Check My Work Recall that goodwill is not amortized because its useful life is indefinite. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it t Dec. 31 Amortization Expense-Patents 88 Patents Feedback ✓ Check My Work A separate contra asset account is usually not used for intangible assets. Pay close attention to the date of purchase. c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank. Dec. 31 Loss from Impaired Goodwill ✓ Goodwill
mpaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $115,200. In addition, on December 31, it was estimated that goodwill of $48,500 was impair a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents ✓ 88 Cash Feedback ✓ Check My Work Recall that goodwill is not amortized because its useful life is indefinite. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it t Dec. 31 Amortization Expense-Patents 88 Patents Feedback ✓ Check My Work A separate contra asset account is usually not used for intangible assets. Pay close attention to the date of purchase. c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank. Dec. 31 Loss from Impaired Goodwill ✓ Goodwill
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Impaired Goodwill and Amortization of Patent
On April 1, a patent with an estimated useful economic life of 12 years was acquired for $115,200. In addition, on December 31, it was estimated that goodwill of $48,500 was impaired.
a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank.
April 1 Patents
Cash
Feedback
Check My Work
Recall that goodwill is not amortized because its useful life is indefinite.
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.
Dec. 31 Amortization Expense-Patents
✓
Patents
Feedback
✓
Check My Work
A separate contra asset account is usually not used for intangible assets. Pay close attention to the date of purchase.
Feedback
c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank.
Dec. 31 Loss from Impaired Goodwill
Goodwill
✓
✓
Feedback
Check My Work
Check My Work
Goodwill is not amortized like other intangible assets. If Goodwill is impaired, loss should be recorded.
✓
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