Question
At the start of the current year, a company paid for the following in cash: Copyrights, $2,000,000 Equipment, $25,000,000 Goodwill, $4,500,000 Inventory, $1,500,000 Land, $15,000,000
At the start of the current year, a company paid for the following in cash:
Copyrights, $2,000,000
Equipment, $25,000,000
Goodwill, $4,500,000
Inventory, $1,500,000
Land, $15,000,000
Patents, $1,500,000
Prepaid rent, $500,000
Research and development, $500,000
Supplies, $4,000,000
Trademarks, $1,000,000
It amortizes its intangibles over 10 years. Determine its current year amortization expense.
Group of answer choices
a. $950,000
b. $400,000
c. $500,000
d. $150,000
e. $350,000
2.
Based on the following year-end account balances, what amount would the company report on its balance sheet as intangible assets?
| Buildings and Equipment | $35,000,000 |
| Accumulated depreciation | 5,000,000 |
| Copyrights | 2,400,000 |
| Patents | 10,000,000 |
| Research and development | 12,000,000 |
Group of answer choices
a. $12,400,000.
b. $5,000,000.
c. $10,000,000
d. $17,400,000.
e. $24,400,000.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
