Compute the annual amortization expense

Reference no: EM131812707

Pacart Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items:

Patent with 5 remaining years of legal life $48,000

Goodwill 35,000

Required

a. Compute the annual amortization expense for these items if applicable.

b. Record the purchase of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the preceding one. Pacart's financial condition just prior to the purchase of these assets is shown in the following statements model. The first event is recorded as an example. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)

Reference no: EM131812707

Questions Cloud

Reflect on your learning experiences as a consumer : Evaluate how the information provided is (or is not) beneficial to you as a healthcare consumer.

Finding missing amounts : Finding Missing Amounts [LO2, LO3, LO5] At December 31, 2014, the records of Kozmetsky Corporation provided the following selected and incomplete data

Compute the amount of rainfall at an airport next month : Identify the set of possible values for each random variable. (Make a reasonable estimate based on experience, where necessary.)

List two web sites where you can freely use the media : List two web sites where you can freely use the media (pictures, images, etc.) without violating any copyright laws.

Compute the annual amortization expense : Pacart Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items:

Pam and john file a joint income tax return : John is a full-time student who is pursuing his Ph.D. inPsychiatry. He earned no income during 2016, but did receive a $25,000 tuition scholarship.

Describe the range of options that are available : Study the range of options that have previously been proposed or tested for solving your chosen environmental health problem.

What is cost behavior analysis : Break-even analysis is of limited use to management because a company cannot survive by just breaking even." Do you agree? Agree or not agree

Create a shell for the electronics management plan : Create a Shell for the Electronics Management Plan. Explain the purpose and importance of an Electronics Management Plan.

User Account

All Pages