Question

Electronic 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 ....... $35,000
Goodwill ........................ 25,000


Electronics 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 year1.


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  • CreatedOctober 26, 2013
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