E10-12 The following are selected 2017 transactions of Pedigo Corporation.
Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is
indefi nite.
May 1 Purchased for $75,000 a patent with an estimated useful life of 5 years and a
legal life of 20 years.
Instructions
Prepare necessary adjusting entries at December 31 to record amortization required by
the events above