These are selected 2022 transactions for Bramble Corporation:
Jan. 1 Purchased a copyright for $87,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years.
Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $30,000.
Sept. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite.
Required:
a. Prepare all adjusting entries at Dec. 31 to record amortizations required by the events.

Dr amortization expense    $14,500

Cr Copyright asset                             $14,500

Dr amortization expense    $6,250

Cr Patent asset                                $6,250

Explanation:

First of all,a goodwill with an indefinite life is not depreciable,hence no adjusting journal entries would be prepared in respect of the goodwill.

However,the copyright would be amortized using the lower of useful life of 6 years and legal life of 30 years,the amortization expense for the year is shown below:

amortization charge=$87,000/6 years=$14,500

The patent is to amortized in the way as the as the copyright the lower of useful life and legal life.

amortization charge=$30,000/4 years*10/12=$6250

The patent was only used for 10 months in the year

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.