Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 43

A Impaired goodwill and amortization of patent
On December 31, it was estimated that goodwill of $4,000,000 was impaired. In addition a patent with an estimated useful economic life of 15 years was acquired for $900,000 on August 1.
a. Journalize the adjusting entry on December 31 for the impaired goodwill.
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights
B Impaired goodwill and amortization of patent
On December 31, it was estimated that goodwill of $6,000,000 was impaired. In addition a patent with an estimated useful economic life of 12 years was acquired for $1,500,000 on April 1.
a. Journalize the adjusting entry on December 31 for the impaired goodwill.
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights.