Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amazon, Google, and LinkedIn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method

Amazon, Google, and LinkedIn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their 2013 annual reports.

Type of Intangible Asset Amazon.com Google Inc. LinkedIn Corp.
Developed Technology 4.4 8.1 2.2
Trade Names 3.0 5.3 1.9
Customer Relationships 2.4 6.5 3.4

Assume each company spent $784,080 at the beginning of the current year for additional Developed Technology. Because of its proprietary nature, the technology is estimated to have no residual value at the end of its estimated life.

Required:

Calculate the impact (direction and amount) that the amortization of such expenditures would have on each companys Income from Operations in the current year. (Decreases should be indicated by a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Evaluating Web Sites For Legal Compliance Basics For Web Site Legal Auditing

Authors: Leopoldo Brandt Graterol, John Ng'ang'a Gathegi

1st Edition

0810844737, 978-0810844735

More Books

Students also viewed these Accounting questions