17) Suppose Arian Industries pays $120,000 on January 1 to purchase a patent on a new manufacturing process. Arian Industries believes this patent’s useful life is six years. Record the journal entries to record the purchase and the amortization.
18) Carine Corporation purchased Matilda Industries on January 1, 2012. At the time of the purchase, the market value of Matilda's assets is $1,120,000 and its liabilities total $320,000. Carine pays $900,000 for Matilda. Calculate the Goodwill and record the journal entry to record the purchase.
19) Suppose goodwill that is carried on the balance sheet at its original value of $120,000 is valued at year end at $70,000. What is the journal entry required to record this?
20) A company pays $98,000 for a copyright and it is estimated that the useful life is ten years. What is the journal entry to record its amortization at year end?
21) Lobella Corporation purchased Melissa Industries on January 1, 2012. At the time of the purchase, the
market value of Melissa's assets is $920,000 and its liabilities total $580,000. Lobella pays $500,000 for Melissa. Calculate the Goodwill and record the journal entry to record the purchase.