Question: In early January Burger Mania acquired 100 of the common
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?
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