Question: Please answer in good accounting format with solutions. On June 28 Lexicon Corporation acquired 100% of the common shares of Gulf & Eastern. The purchase
On June 28 Lexicon Corporation acquired 100% of the common shares of Gulf \& Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology; \$2 million, in-process research and development; $5 million, goodwill. Lexicon's policy is to amortize intangible assets using the straight-line method, no residual value, and a five-year useful life. What is the total amount of expenses (ignoring taxes) that would appear in Lexicon's income statement for the year ended December 31 related to these items? On June 28 Lexicon Corporation acquired 100% of the common shares of Gulf \& Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology; \$2 million, in-process research and development; $5 million, goodwill. Lexicon's policy is to amortize intangible assets using the straight-line method, no residual value, and a five-year useful life. What is the total amount of expenses (ignoring taxes) that would appear in Lexicon's income statement for the year ended December 31 related to these items
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