Eckert company is involved in producing and selling high-end golf equipment. the company has recently been involved in developing various types of laser guns to measure yardages on the golf course. one small laser gun, called littlelaser, appears to have a very large potential market. because of competition, eckert does not believe that it can charge more than $86 for littlelaser. at this price, eckert believes it can sell 120,000 of these laser guns. eckert will require an investment of $12,000,000 to manufacture, and the company wants an roi of 18%. determine the target cost for one littlelaser.

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by bridgeport corporation. 1. bridgeport developed a new manufacturing process, incurring research and development costs of $195,600. the company also purchased a patent for $45,200. in early january, bridgeport capitalized $240,800 as the cost of the patents. patent amortization expense of $12,040 was recorded based on a 20-year useful life. 2. on july 1, 2017, bridgeport purchased a small company and as a result recorded goodwill of $52,000. bridgeport recorded a half-year’s amortization in 2017, based on a 20-year life ($1,300 amortization). the goodwill has an indefinite life. prepare all journal entries necessary to correct any errors made during 2017. assume the books have not yet been closed for 2017.