Record amortization expense for the intangible assets at December 31, 2021
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11EA: The following intangible assets were purchased by Goldstein Corporation: A. A patent with a...
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Question
The following information relates to the intangible assets of Lettuce Express:
- On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,460,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,314,000.
- Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $45,100. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 11 more years.
- Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $145,200. The contractual life of the franchise is six years.
1. Record amortization expense for the intangible assets at December 31, 2021. (If no entry is required for a transaction/event, select "No
- Record the amortization on
goodwill . -
Note: Enter debits before credits.
|
- Record amortization on the patent.
-
Note: Enter debits before credits.
|
- Record amortization on the franchise rights.
-
Note: Enter debits before credits.
|
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