Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Larkspur Golf Inc. was formed on July 1.2024, when Matt Magilke purchased the Old Master Golf Company, Old Master provides video golf instruction at kiosks
Larkspur Golf Inc. was formed on July 1.2024, when Matt Magilke purchased the Old Master Golf Company, Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to intesrate the instructional business into his golf equipment and accessory stores. Magilke paid $770,000 cash for Old Master. At the time. Old Master's balance sheet reported assets of $670.000 and liabilities of $210.000 (thus stockholders' equity was $460,000 ). The fair value of Old Master's assets is estimated to be $800,000. included in the assets is the Old Master trade name with a fair value of $12,000 and a copvright on some instructional books with a fair value of $43,200. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely . The copyright has a remaining life of 40 years. (a) Prepare the intangible assets section of Larkspur Golf Inc at December 31. 2024 . Prepare the intangible assets section of Larkspur Golf Inc. at December 31. 2024. How much amortization expense is included in Larkspur income for the year ended December 31, 2024
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started