Question
On 11/1/19, Santa paid $10,000 for a customer list labeled the Naughty and Nice. He incurred legal fees of $400 and filing expenses of $3,500
On 11/1/19, Santa paid $10,000 for a customer list labeled the Naughty and Nice. He incurred legal fees of $400 and filing expenses of $3,500 to obtain this customer list. Santa plans to use this list over the next 10 years while the kids are still young enough to believe in Santa. At the end of its useful life, he will be able to sell it for $1,000.
- How much would Santa amortize this Customer List for in 2019?
- How much would Santa amortize this Customer List for in 2020?
- During 2021, Santa determined that he would only receive future cash flows and a fair value of $5,600 for owning this customer list. With that said, is Santas list impaired? HINT: First determine the book value as of 1/1/21, then determine the impairment amount, if any.
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Green Energy Audit Of Buildings A Guide For A Sustainable Energy Audit Of Buildings
Authors: Giuliano Dall’O’
2013 Edition
1447161726, 978-1447161721
