10 Problem #3 3. (5 points) Grabow Corporation has goodwill of $300,000 as a part of its intangible assets on the balance sheet. Management has determined that this goodwill will be useful to the corporation for 5 years, after which its usefulness is questionable. Journalize the amortization of the goodwill for Grabow Corporation. Debit Credit b. C. d. (2 points each) Record the accounting treatment for the following types of R&D expenditures. Your answers should one of the following: Expense immediately as R&D [E] Capitalize expenditure and record depreciation expense as R&D [D] Inventory expenditure, allocate to R&D projects, expense as consumed by projects [1] Expense as operating expense [0] Do not record transaction (N/T] Expenditure on R&D project that cannot be used on any future projects Chief Executive Officer salary Salary of research department manager Raw materials expenditure for materials to be used in various R&D projects Expenditure for inspection of prototype (5 points) The following information pertains to a limited-life intangible asset on the books and records of ABC Company: Undiscounted future cash flows from use of the asset-$40,000,000; discounted future cash flows from use of the asset (ie., fair value) - $32.000,000; carrying value at period end - $35,000,000. What is the reduction of the asset value (if any) due to impairment? (5 points) Use the information in (c) above, except now assume the intangible asset is indefinite-life. What is the reduction of the asset value (if any) due to impairment?