Electronic Manufacturing paid 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 .......$35,000
Goodwill ........................$25,000
![1643_264-B-A-I-A (3511).png](https://secure.tutorsglobe.com/CMSImages/1643_264-B-A-I-A (3511).png)
Electronics financial condition just prior to the acquisition of these assets is shown in the following statements model:
Required:
a. Compute the annual amortization expense for these items.
b. Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown above.
c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1.