During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

b. Calculate impairment losses for fiscal 2016.

c. Determine the amounts reported on Cisco’s fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

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Indefinite Limited Lives Lives Technology Customer Relationships IPR&D Acquired Company (in Useful life Useful life thousands) (in years) Amount (in years) Amount Amount Lancope, Inc $79,000 $29,000 $121,000 Jasper Technologies, Inc 6 240,000 7 75,000 23,000 Indefinite Limited Lives Lives Technology Customer Relationships IPR&D Acquired Company (in Useful life Useful life thousands) (in years) Amount (in years) Amount Amount Lancope, Inc $79,000 $29,000 $121,000 Jasper Technologies, Inc 6 240,000 7 75,000 23,000

Answer rating: 100% (QA)

Question Amortization and Impairment Testing of Identifiable Intangible Assets During the year ended ... View the full answer