Selected accounts of the Zena Company are listed below. On January 1, 2016, the only intangible...

Selected accounts of the Zena Company are listed below. On January 1, 2016, the only intangible asset in the company’s account was Goodwill. This was recorded in 2009 when the company acquired another company and paid $350,000 more than the fair market value of the net identifiable tangible assets acquired. For two years, the company amortized the costs on the basis of a 40-year life, charging a total of $16,800 ($8,400 each year) to an account called Amortization Expense—Goodwill. However, no amortization of goodwill has been recorded since 2010. Transactions and events that took place at the company during 2016 are given below. TRANSACTIONS AND OTHER INFORMATION 1. On May 10, 2016, the company paid $180,000 to purchase a product formula. The formula is expected to have a useful life of eight years. 2. On July 5, the company paid $590,000 for a patent having a useful life of 10 years. 3. On September 22, the company purchased a unique computer program for $230,000. This program has an estimated useful life of five years. 4. During the year, the company recorded various cash expenditures of $205,000 for labor and supplies used in its research department. 5. At the end of 2016, the company reviewed the goodwill shown in the accounts. Based on the profitability of activities acquired in purchasing the other business, the owners of the business think the goodwill has a value of $270,000 and should be of benefit for many more years. 1. Record the transactions for 2016. 2.Record amortization of the intangible assets, where appropriate, for the year ended December 31, 2016. 3. Record impairment of assets, where appropriate, on December 31, 2016.

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Exercise1. Selected transactions for the SJH Company are listed below. 1. Collected accounts receivable. 2. Declared...

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