Question: Please help me understand what is being asked. On June 28, Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase
Please help me understand what is being asked.
On June 28, Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4.2 million, patent; $3.2 million, developed technology; $2.2 million, indefinite-lifetrademark; $5.2 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?(Enter your answers in whole dollars.)
Item Cost Select Amortization expense in current (partial) year
Patent $4200000 Amortized or Non Amortized $__________________
Developed technology $3200000 Amortized or Non Amortized $__________________
Indefinite-life trademark $2200000 Amortized or Non Amortized $__________________
Goodwill $5200000 Amortized or Non Amortized $__________________
Total amortization expense - current year $__________________
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