Prepare adjusting entries for amortization
Jan 1- Purchased a small company and recorded goodwill of $150,000. It's 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.
Jan 1 No entry because
Goodwill and trademarks were determined to have indefinite useful lives and are not amortized into results of operations
May 1 (75000/5)Amortization exps.(Dr.) $15000
Accumulated Amortization-Patent(Cr.) $15000
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?