P12-6 - Amortization expense 600 Copyright 600 Balance...

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A) Intangibles Trade name $10,000 Copyright 24,000 Goodwill computation Purchase Price 770,000 Fair value of assets 800,000 Fair value of liabilities (200,000) Fair Value of net assets 600,000 Goodwill $170,000 Trade name can be renewed indefinitely and so has perpetual life and will not be Goodwill is not amortized but tested for impairment Copyright has a remaining life of 40 years Amortization expense for copyright 300 The purchase was m This is the amortiza The balance sheet is Montana Matt's Golf Inc. Intangibles Section of Balance Sheet Dec 31,2009 Trade name $10,000 Copyright 23,700 Goodwill 170,000 Total intangibles $203,700 B) In 2010, there will be a full year amortization of the copyright Amortization of copyright 600 The journal entry is
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Unformatted text preview: Amortization expense 600 Copyright 600 Balance Sheet Montana Matt's Golf Inc. Intangibles Section of Balance Sheet Dec 31,2010 Trade name $10,000 Copyright 23,100 Goodwill 170,000 Total intangibles $203,100 C) Carrying amount of trademark 10,000 Fair value of trademark 3,000 Loss on impairment $7,000 Carrying amount of copyright 24,000 Fair value of copyright 25,000 Loss on impairment (1,000) ` Carrying value of goodwill $170,000 Fair value of goodwill 90,000 Loss on impairment $80,000 Loss on impairment 7,000 Trademark 7,000 Loss on impairment 1,000 Copyright 1,000 Loss on impairment 80,000 Goodwill 80,000 amortized made in July, which makes it 1/2 year ation expense in the income statement...
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This note was uploaded on 03/21/2010 for the course ACCT acct taught by Professor Jones during the Spring '10 term at DeVry Sherman Oaks.

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P12-6 - Amortization expense 600 Copyright 600 Balance...

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