LMN Company purchased another company on January 1, 2015, resulting in the recording of goodwill of...

 

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LMN Company purchased another company on January 1, 2015, resulting in the recording of goodwill of $2,000,000 and a patent valued at $120,000. The patent has a remaining life of 10 years. At December 31, 2015, it was determined that an impairment in the value of the goodwill of $500,000 had occurred. 1. Prepare any necessary journal entries affecting the goodwill and patent accounts at December 31, 2015. LMN Company purchased another company on January 1, 2015, resulting in the recording of goodwill of $2,000,000 and a patent valued at $120,000. The patent has a remaining life of 10 years. At December 31, 2015, it was determined that an impairment in the value of the goodwill of $500,000 had occurred. 1. Prepare any necessary journal entries affecting the goodwill and patent accounts at December 31, 2015.

Answer rating: 100% (QA)

To prepare the necessary journal entries affecting the goodwill and patent accounts at December 31 2015 we need to account for the impairment in the value of goodwill Heres how the journal entries wou... View the full answer