Exercise $8-21$A $($Static$)$ Computing and recording the amortization of intangibles LO $8-10,8-11$

Dynamo Manufacturing pald cash to acquire the assets of an existing company. Among the assets acquired were the following items:

$```$

Patent with $4$ remaining years of legal life $ $40,000$

Goodwill

$35,000$

$```$

Dynamo's financial condition Just prior to the acquisition of these assets is shown in Required B$.$

Required

a$.$ Compute the annual amortization expense for these items.

b$.$ Record the acquisition of the intanglble assets and the related amortization expense for Year $1$ In a horizontal statements model.

Complete this question by entering your answers in the tabs below.

Required A

Compute the annual amortization expense for these items.

Amortization expense

per year Complete this question by entering your answers in the tabs below.

Required B

Record the acquisition of the intangible assets and the related amortization expense for Year $1$ in a horizontal statements model. Leave cells blank if no input is needed.

Show less A

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{16\}\{|$c$|\}\{$DYNAMO MANUFACTURING$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{16\}\{|$c$|\}\{$Horizontal Statements Model$\}\backslash \backslash$

$\backslash$hline $\backslash$multirow$\{3\}\{*\}\{$Event$\}$ & $\backslash$multicolumn$\{9\}\{|$c$|\}\{$Balance Sheet$\}$ & $\backslash$multicolumn$\{5\}\{|$c$|\}\{$Income Statement$\}$ & $\backslash$multirow$\{3\}\{*\}\{$Statement of Cash Flows$\}\backslash \backslash$

$\backslash$hline & $\backslash$multicolumn$\{5\}\{|$c$|\}\{$Assets$\}$ & $\backslash$multirow$\{2\}\{*\}\{\backslash (=\backslash )\}$ & $\backslash$multirow$[$b$]\{2\}\{*\}\{$Liabilities$\}$ & $\backslash$multirow$\{2\}\{*\}\{+\}$ & $\backslash$multirow$[$b$]\{2\}\{*\}\{$Stockholders$\text{'}$ Equity$\}$ & $\backslash$multirow$\{2\}\{*\}\{$Revenue$\}$ & $\backslash$multirow$[$b$]\{2\}\{*\}\{-\}$ & $\backslash$multirow$[$b$]\{2\}\{*\}\{$Expenses$\}$ & $\backslash$multirow$\{2\}\{*\}\{\backslash (=\backslash )\}$ & $\backslash$multirow$\{2\}\{*\}\{$Net Income$\}$ & $\backslash \backslash$

$\backslash$hline & Cash & $\backslash (+\backslash )$ & Patent & $+$ & Goodwill & & & & & & & & & & $\backslash \backslash$

$\backslash$hline Beginning balances & $90,000$ & $\backslash (+\backslash )$ & & $\backslash (+\backslash )$ & & $\backslash (=\backslash )$ & & $+$ & $90,000$ & & $-$ & & $\backslash (=\backslash )$ & & $\backslash \backslash$

$\backslash$hline Acquisition & & $\backslash (+1\backslash )$ & & $\backslash (+\backslash )$ & & $=$ & & $\backslash (+\backslash )$ & & & $-$ & & $=$ & & $\backslash \backslash$

$\backslash$hline Amortization & & $+$ & & $+$ & & $=$ & & $+$ & & & $-$ & & $=$ & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash (\backslash$square $\backslash )$ Required B