Data related to the acquisition of intangible assets during the current year ended December 31 are as

Question:

Data related to the acquisition of during the current year ended December 31 are as follows:
a. Governmental and legal costs of $655,200 were incurred on January 4 in obtaining a patent with an estimated economic life of 12 years.
b. arising from acquiring a business was purchased on July 1 for $8,400,000. The goodwill is estimated to have been impaired during the remainder of the year, and thus was estimated to have a value of $1,100,000 on December 31.
c. Copyrights with an estimated life of nine years were purchased for $450,000 on October 1.

Instructions
1. Record the acquisition of each intangible asset.
2. Record the December 31 adjusting entries for each intangible asset.
3. What impact will the transactions in (1) and (2) have on the statement of cash flows?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...