12-6 - 12-6(a)1) Trade name has an indefinite...

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Unformatted text preview: 12-6(a)1) Trade name has an indefinite life-therefore it cannot be amortized.2)Copyright has a life of 40 years, purchase price is 20,000, therefore amortization per year is $500. however as it was purc3)Purchase price for OldMaster is $750,000. However FairValue is $800,000->further computation needs to be done to com1)Purchase price 750,0002)Fair Value of net Assets {note 1}600,000{note 1}Fair value of Assets = 800,000Less: Fair Value of Liabilities200,000Fair value of Net assets*$600,000 3) Good will150,000Purchase price750,000Less:Fair Value of net assets600,000Goodwill150,000Balance Sheet - Intangible AssetsTradename 10,000.00 Copyright - After Amortizion 250.00 $20,000-($20,000/40year)*1/2yearGoodwill 150,000.00 Total Intangible Assets 160,250.00 12-6b31-Dec-07Copyright Amortization Expense500 Copyright (or Accumulated Copyright Amortization)500(to record amortization of copyright)...
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This note was uploaded on 01/08/2010 for the course ACC 551 taught by Professor None during the Spring '09 term at Ill. Chicago.

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12-6 - 12-6(a)1) Trade name has an indefinite...

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