E10-12 The following are selected 2008 transactions of Franco Corporation.
Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite.
May 1 Purchased for $90,000 a patent with an estimated useful life of 5 years and a legal life of
20 years.
Instructions
Prepare necessary adjusting entries at December 31 to record amortization required by the
events above.
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