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Reika [66]
4 years ago
7

Jan. 1Purchased a small company and recorded goodwill of $177,000. Its useful life is indefinite. May 1Purchased for $144,000 a

patent with an estimated useful life of 6 years and a legal life of 19 years. Prepare necessary adjusting entries at December 31 to record amortization required by the events above.
Business
1 answer:
stich3 [128]4 years ago
3 0

Answer:

The Journal entries are as follows:

(i) On December 31,

No entry

(ii) On December 31,

Amortization expense A/c Dr. $16,000

           To Patents A/c                            $16,000

(To record the amortization expenses)

Workings:

Amortization expense:

= (Purchasing cost of patent ÷ Estimated useful life) × Time period

= ($144,000 ÷ 6) × (8/12)

= $24,000 × (8/12)

= $16,000

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8 0
3 years ago
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katen-ka-za [31]

Answer:

Explanation:

The journal entries are shown below:

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4 years ago
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Alexus [3.1K]

Answer:

<u>geographic </u>departmentalization.

Explanation:

It is correct to say that multinational corporations tend to use geographic departmentalization due to the large differences between different regions.

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What is application software?
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