The following are selected 2014 transactions of Pedigo Corporation. Jan. 1 Purchased a small company and recorded

Question:

The following are selected 2014 transactions of Pedigo Corporation.
Jan. 1 Purchased a small company and recorded of $150,000. Its useful life is indefinite.
May 1 Purchased for $75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.

Instructions
Prepare necessary adjusting entries at December 31 to record amortization required by the events above.

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...