Question: Due to rapid turnover in the accounting department a

Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Chansantor Company in 2012.
1. Chansantor developed a new manufacturing process, incurring research and development costs of $110,000. The company also purchased a patent for $50,000. In early January, Chansantor capitalized $160,000 as the cost of the patents. Patent amortization expense of $8,000 was recorded based on a 20-year useful life.
2. On July 1, 2012, Chansantor purchased a small company and as a result acquired goodwill of $200,000. Chansantor recorded a half-year’s amortization in 2012, based on a 50-year life ($2,000 amortization). The goodwill has an indefinite life.
Prepare all journal entries necessary to correct any errors made during 2012. Assume the books have not yet been closed for 2012.

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