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Electronic Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items:
Patent with 4 remaining years of legal life .......$35,000Goodwill ........................$25,000
Electronics financial condition just prior to the acquisition of these assets is shown in the following statements model:
Required:
a. Compute the annual amortization expense for these items.
b. Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model like the one shown above.
c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1.
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What is the expected price of the material per pound? What is the expected amount of material needed for 100 units?
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