These are selected 2010 transactions for Hammon Corporation: Jan. 1 Purchased a copyright for $120,000. The copyright

Question:

These are selected 2010 transactions for Hammon Corporation:
Jan. 1 Purchased a copyright for $120,000. The copyright has a useful life of 8 years and a remaining legal life of 30 years.
May 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $54,000.
Sept 1 Purchased a small company and recorded of $150,000. Its useful life is indefinite.

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

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...