The following are selected 2020 transactions of Pedigo Corporation. Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. May 1 Purchased for $75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years. Prepare necessary adjusting entries at December 31 to record amortization required by the events above.

                              Pedigo Corporation

                                  Journal Entries

                                                                        Debit             Credit

Amortization Expense - Patent                    $10,000        

       Patents (Working 1)                                                       $10,000

To record amortization of Patents on December 31, 2020

Explanation:

Working 1:

Amortization expense = Patent cost x 1/5 year x 8/12 months

                                     = $75,000 x 1/5 x 8/12

                                     = $10,000

Note that no entry is made to to amortize Goodwill worth $150,000. This is because Goodwill has an indefinite life. As only entries to record amortization are required, there is no other entry on December 31, 2020.

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: