Estimate patent to have a 5-year useful life

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Prepare journal entries for 2016 for the following independent situations. Assume each organization has a December 31st year-end.

Keepers Inc. purchased a patent for $425,000 on January 1st. Keepers estimates this patent to have a 5-year useful life.

Blue Bat Corporation purchases one of their main competitors on March 31. Blue Bat paid $90,000 for this purchase, which included assets of $70,000 and liabilities of $2,000. The goodwill is believed to have an indefinite benefit.

Reference no: EM132989241

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