In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $ 4 million, patent; $ 5 million, trademark considered to have an indefinite useful life; and $ 6 million, goodwill. Burger Mania’s policy is to amortize intangible assets with finite useful lives using the straight- line method, no residual value, and a five- year service life. What is the total amount of amortization expense that would appear in Burger Mania’s income statement for the first year ended December 31 related to these items?
Answer to relevant QuestionsGranite Stone Creamery sold ice cream equipment for $ 16,000. Granite Stone originally purchased the equipment for $ 90,000, and depreciation through the date of sale totaled $ 71,000. What was the gain or loss on the sale ...Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price .................. $ 75,000Sales tax ..................... 6,000Shipment of machine ................ 1,000Insurance on the machine ...Sub Sandwiches of America made the following expenditures related to its restaurant: 1. Replaced the heating equipment at a cost of $ 250,000. 2. Covered the patio area with a clear plastic dome and enclosed it with glass ...Abbott Landscaping purchased a tractor at a cost of $ 42,000 and sold it three years later for $ 21,600. Abbott recorded depreciation using the straight- line method, a five- year service life, and a $ 3,000 residual value. ...Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:Basic research to develop the technology.........$2,000,000Engineering design ...
Post your question