Abacus Company purchased a customer database and in-process research and development for a total of $100,000. Abacus Company uses the expected cash flow approach for estimating the fair value of these two intangibles. The appropriate interest rate is 5%. The potential future cash flows from the two intangibles, and their associated probabilities, are as follows:
Customer Database:

In-process Research and Development:

Prepare the journal entry necessary to record the purchase of the two intangibles.

Question

Abacus Company purchased a customer database and in-process research and development for a total of $100,000. Abacus Company uses the expected cash flow approach for estimating the fair value of these two intangibles. The appropriate interest rate is 5%. The potential future cash flows from the two intangibles, and their associated probabilities, are as follows:
Customer Database:
  
In-process Research and Development:
  
Prepare the journal entry necessary to record the purchase of the two intangibles.

Quizplus · Accepted Answer

The Answer of Abacus Company purchased a customer database and in-process research and development for a total of $100,000. Abacus Company uses the expected cash flow approach for estimating the fair value of these two intangibles. The appropriate interest rate is 5%. The potential future cash flows from the two intangibles, and their associated probabilities, are as follows:
Customer Database:
  
In-process Research and Development:
  
Prepare the journal entry necessary to record the purchase of the two intangibles.

Abacus Company Purchased a Customer Database and In-Process Research and Development