Reference no: EM132382283
Question
Part A)
On January 2, 2019, Adelphi Company purchased a patent for $170,000 plus $5,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 6 years after which time it will be worthless. How much is the annual amortization expense for 2019? Round to nearest whole dollar.
Part B)
Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:
Item Amount
Accounts Receivable assumed by buyer $96,000
Inventory $290,000
Property, Plant & Equipment (net) $565,000
Notes Payable assumed by buyer $675,000
Using this information, how much should be recorded as Goodwill for this transaction?