Part 1 CTS Canada provides telephone service to most of Canada. Assume that CTS Canada purchased another

Question:

Part 1 CTS Canada provides telephone service to most of Canada. Assume that CTS Canada purchased another company that had the following totals on its financial statements:
Book value of assets .................................................... $1,536,000
Market value of assets ................................................... 1,800,000
Liabilities ......................................................................... 540,000
Required
1. Make the general journal entry to record CTS Canada's purchase of the other company for $1,620,000 cash on April 3.
2. How should CTS Canada account for at year end and in the future? Explain in detail.
Part 2 Suppose BlackBerry Ltd. purchased a patent for $1,400,000 on January 1. Before using the patent, BlackBerry incurred an additional cost of $250,000 for a lawsuit to defend the company's right to purchase it. Even though the patent gives BlackBerry legal protection for 20 years, company management has decided to amortize its cost over an 8-year period because of the industry's fast-changing technologies.
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...