contestada

Assume that Brittany acquires a competitor’s assets on March 1st. The purchase price was $250,000. Of the amount, $150,000 is allocated to tangible assets and $100,000 is allocated to goodwill (a §197 intangible asset). What is Brittany’s amortization expense for the current year?

Respuesta :

jepessoa

Answer:

The answer is: $5,555.60

Explanation:

To calculate Brittany's amortization for the current year we use the full month convention = 10 months (March to December), and then we determine the monthly amortization by dividing the total goodwill by 180 months = $100,000 / 180 = $555.56.

The total amortization for this year = $555.56 per month x 10 months = $5,555.60

Otras preguntas

Q&A Education