Refer to the acquisition date data above for the combination of XR Inc and Renex.

Assume that, on July 1, 2015 XRInc. issues 1,200,000 shares of common stock with a $1 par value and a $18.25 market value to obtain all of Renex's outstanding common stock. In addition to the assets that Renex reports on their balance sheet, Renex also owns an internally developed patent with a fair value of $1,000,000 and a useful life of 5 years. How much amortization expense should XR Inc recognize with respect to the acquisition of Renexfor the year ending June 30, 2016?

(Hint: In 2016, the Amortization is actually "negative" amortization.)

Remaining Useful Life for Account Value @ ENE Value @ WEE Value @ W15 Renex's Assets %% Accnu nts Re ceivable nventnryr Land Buildings {net} Equi pm ent {net} , Accnunts Payable [3,301], LungTerm Hates Payable (13,313, Common Stock [51 par} [l PaidIn Capital [31560, E 1f1f14 Reve nues Expenses Fishy: Es??? E ! EEEE F]- :T E a ! H D 10,111], 3 9 ! Fa: '--' E E g igsgs E I [102ml E g!!! E lilll a E E