Question
Cost Select Amortization expense in current (partial) year Patent $4,100,000 Developed technology 3,100,000 In-process research and development 2,100,000 Goodwill 5,100,000 Total amortization expense - current
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On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4.1 million, patent; $3.1 million, developed technology; $2.1 million, inprocess research and development; $5.1 million, goodwill. Lexicons policy is to amortize intangible assets using the straight-line method, no residual value, and a five-year useful life. What is the total amount of expenses (ignoring taxes) that would appear in Lexicons income statement for the year ended December 31 related to these items? (Enter your answers in whole dollars.)
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