Orbit Inc Purchased Planet Co

Multiple Choice

Orbit Inc. purchased Planet Co. on January 1, 20X3. At that time an existing patent having a 5-year estimated life was assigned a provisional value of $10,000 and goodwill was assigned a value of $100,000. By the end of fiscal year 20X3, better information was available that indicated the fair value of the patent was $20,000. How should intangible assets be reported at the beginning of fiscal year 20X4?

A) Goodwill $100,000 Patent $10,000
B) Goodwill $90,000 Patent $16,000
C) Goodwill $84,000 Patent $16,000
D) Goodwill $90,000 Patent $20,000