Question

Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items:
Patent with 4 remaining years of legal life ..... $40,000
Goodwill ................. 35,000
Dynamo’s financial condition just prior to the acquisition of these assets is shown in the following statements model:
Required
a. Compute the annual amortization expense for these items.
b. Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown above.
c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1.


$1.99
Sales9
Views152
Comments0
  • CreatedApril 20, 2015
  • Files Included
Post your question
5000