On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, it was estimated that goodwill of $6,000,000 was impaired.

Journalize the adjusting entry on December 31 for the impaired goodwill.

Question

Randy Tanner

Business

7 June, 13:14

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, it was estimated that goodwill of $6,000,000 was impaired.

Journalize the adjusting entry on December 31 for the impaired goodwill.

+1

Answers (1)

Know the Answer?

Keaton Arias · Answer 1

Answer

debit credit

assets acquired $ 1 500 000

goodwill $6 000 000

cash $2 100 000

Explanation:

goodwill is an intangible asset that the company purchases from another company in the price that is higher than their own fair value

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, it was estimated that goodwill of $6,000,000 was impaired.Journalize the adjusting entry on December 31 for the impaired goodwill.

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, it was estimated that goodwill of $6,000,000 was impaired.

Journalize the adjusting entry on December 31 for the impaired goodwill.