Give the journal entry for each of the transactions

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Question: Determining Financial Statement Effects of Activities Related to Intangible Assets Norton Pharmaceuticals entered into the following transactions that potentially affect intangible assets: (a) On January 1, 2009, the company spent $18,600 cash to buy a patent that expires in 15 years. ( b) During 2009, the company spent $25,480 working on a new drug that will be submitted for FDA testing in 2010. ( c) Norton Pharmaceuticals purchased the assets of another business in 2009 for a cash lumpsum payment of $650,000. Included in the purchase price was "Goodwill, $75,000."

Required: 1. Give the journal entry for each of these transactions.

2. For each of the intangible assets, compute amortization for the year ended December 31, 2009.

Reference no: EM132091404

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