The Barnum Company acquired several small companies at the end of 2006 and, based on the acquisitions,
Question:
Patent ........ $20,000
Tradename ...... 35,000
Computer software .... 10,000
Goodwill ....... 90,000
The company’s accountant determines the patent has an expected life of 10 years and no expected residual value, and that it will generate approximately equal benefits each year. The company expects to use the tradename for the foreseeable future. The accountant knows that the computer software is used in the company’s 120 sales offices. The company has replaced the software in 60 offices in 2007, and expects to replace the software in 40 more offices in 2008 and the remainder in 2009.
Required
How much amortization expense should the company recognize on each intangible asset in 2007?
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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