17. (4)On January 1, 2013, Moose Co. purchased for $360,000 a patent that had been granted two years earlier. On January 1, 2015, legal costs of $64,000 were incurred in a successful defense of the patent. Assuming the maximum period allowable is used for patent amortization, what is Moose’s patent amortization expense for 2015?
18. (4)D Company registered a patent on January 1, 2015. C Company purchased the patent from D Company for $450,000 on January 1, 2020, and began to amortize the patent over its remaining legal life. In early 2021, C Company determined that the patent’s economic benefits would last only until the end of 2025. What amount should C Company record for patent amortization in 2021?
19. (4)Boggs Company is looking to purchase the Grafton Company for $150,000 cash. The fair value of their equipment is $35,600, the fair value of their inventory is $20,000, their accounts receivable fair value is $24,500, and they have an unrecorded patent of $15,000. All other book values equal fair value as of January 1, 2015.
Required:
1.) Compute the goodwill associated with the purchase of Grafton.
2.) Prepare the journal entry necessary at January 1, 2015 to record the purchase of Grafton.
3.) What if the purchase price was $69,000 would any goodwill be reported?
20. (4)Grier purchased Walters Company several years ago. Walters become a reporting unit of Griers. At the end of 2014, Grier had a net book value of $1.6 million which includes $400,000 of goodwill. A goodwill impairment test is done as part of the year end closing process. Grier estimates the fair value of Walters to be $1.4 million. The fair value of Walters identifiable net assets, excluding goodwill, is $1.3 million.
Required:
1.) Determine if goodwill is impaired
2.) Prepare the journal entry required for the impairment if necessary.
21. (4)The Chambers Company was formed in early 2017. At the time of formation, Chamber spent the following amounts: accounting fees, $4,000; legal…