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Part A)

On January 2, 2019, Adelphi Company

purchased a patent for $170,000 plus $5,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 6 years after which time it will be worthless. How much is the annual amortization expense for 2019? Round to nearest whole dollar.


Part B)

Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:

Item

Amount

Accounts Receivable assumed by buyer

$96,000

Inventory

$290,000

Property, Plant & Equipment (net)

$565,000

Notes Payable assumed by buyer

$675,000

Using this information, how much should be recorded as Goodwill for this transaction?

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