These are selected 2017 transactions for blue corporation: jan. 1 purchased a copyright for $190,800. the copyright has a useful life of 6 years and a remaining legal life of 35 years. mar. 1 purchased a patent with an estimated useful life of 5 years and a legal life of 23 years for $83,400. sept. 1 purchased a small company and recorded goodwill of $153,700. its useful life is indefinite. prepare all adjusting entries at december 31 to record amortization required by the events.

December 31:

Dr Amortization Expenses - Copyright            31,800

Cr Accumulated Amortization - Copyright     31,800

(to record full-year Amortization expenses for copyright)

Dr Amortization Expenses - Patent                   13,900

Cr Accumulated Amortization - Patent            13,900

( to record 10-month Amortization expenses for Patent)

No entries required for goodwill amortization.

Explanation:

As goodwill amortization has indefinite useful life, no entries required for goodwill amortization.

For Copyright and Patent Amortization, we depreciated them based on its useful life and the amount depreciated in 2017 will depend on the month of books of each item in the year. Calculation as below:

Amortization Expenses - Copyright = 190,800/ 6 = $31,800;

Amortization Expenses - Patent = (83,400 / 5) x (10/12) = $13,900 ( as it only on book for 10 months of 2017 starting from Mar 1).