On September 30, 2020, Pepper Corporation acquired all of the assets and liabilities of Salt Company. The acquisition generated goodwill of $50,000,000. At the date of acquisition, identifiable intangibles related to developed technology were reported at a value of $13,800,000, and subsequently amortized using an estimated life of 3 years, straight-line. On March 31, 2021, new information reveals that the technology's fair value was $3,000,000 at the date of acquisition. Pepper's accounting year ends on December 31 of each year.
Required
Prepare the journal entry or entries to record the change in valuation of the developed technology on March 31, 2021, assuming the valuation change is within the measurement period, and a. Amortization on the identifiable intangible has already been recorded through March 31, 2021.
b. Amortization on the identifiable intangible has not yet been recorded for the first quarter of 2021.

Question

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The Answer of On September 30, 2020, Pepper Corporation acquired all of the assets and liabilities of Salt Company. The acquisition generated goodwill of $50,000,000. At the date of acquisition, identifiable intangibles related to developed technology were reported at a value of $13,800,000, and subsequently amortized using an estimated life of 3 years, straight-line. On March 31, 2021, new information reveals that the technology's fair value was $3,000,000 at the date of acquisition. Pepper's accounting year ends on December 31 of each year.
Required
Prepare the journal entry or entries to record the change in valuation of the developed technology on March 31, 2021, assuming the valuation change is within the measurement period, and a. Amortization on the identifiable intangible has already been recorded through March 31, 2021.
b. Amortization on the identifiable intangible has not yet been recorded for the first quarter of 2021.

On September 30, 2020, Pepper Corporation Acquired All of the Assets