Problemon january 1 2011 charlie corporation acquired all, Ask an Expert

Accounting

Problem:

On January 1, 2011, Charlie Corporation acquired all of the net assets of Rocky Corporation for $2,000,000. The following intangible assets are included in the purchase agreement:

Goodwill and going concern value $105,000
Licenses 45,000
Patents 60,000
Covenant not to compete for five years 120,000

Required:

Question: What is the total amount of amortization allowed in 2011?

a. $15,000
b. $22,000
c. $31,000
d. $38,000

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165593

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