ANSWERS TO QUESTIONS

The journal entry to record this transaction is as follows: ... Note—No amortization of goodwill; goodwill should be tested for impair-ment on at least an annual basis in future periods. PROBLEM 12-2 (a) Costs to obtain patent Jan. 2000 $62,050 2000 amortization ($62,050 ÷ 17) (3,650) Carrying value, 12/31/00 $58,400 ... ................
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