Prepare the December 31 entry for Indigo Corporation to record amortization of intangibles. The trademark has an estimateduseful life of 4 years with a residual value of $4,320. (Credit account titles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebitCredit On July 1, 2020, Indigo Corporation purchased Young Company by paying $254,800 cash and issuing a $120,000 note payable toSteve Young. At July 1, 2020, the balance sheet of Young Company was as follows.Cash$50,000Accounts payable$205,000Accounts receivable89,700Stockholders' equity237,200Inventory105,000$442,200Land41,100Buildings (net)75,100Equipment (net)69,600Trademarks11,700$442,200The recorded amounts all approximate current values except for land (fair value of $61,200), inventory (fair value of $125,200), andtrademarks (fair value of $15,360).

The Journal entry for Indigo Corporation to record amortization for intangibles is as follows :

Answered: On July 1, 2020, Indigo Corporation…

On July 1, 2020, Indigo Corporation purchased Young Company by paying $254,800 cash and is Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.

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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