In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain.

Question:

In early January, Burger Mania acquired 100% of the 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 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?

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...