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Problem 1 1 - 1 2 ( Static ) Depreciation and amortization; Impalrment [ LO 1 1 - 2 , 1 1 - 4 ,
Problem Static Depreciation and amortization; Impalrment LO At the beginning of Metatec Incorporated acquired Ellison Technology Corporation for $ million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: tablePlant and equipment depreciable assets$ millionPatent millionGoodwill million The plant and equipment are depreciated over a year useful life on a straightline basis. There is no estimated residual value. The patent is estimated to have a fiveyear useful life, no residual value, and is amortized using the straightline method. At the end of a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined:
Problem Static Depreciation and amortization; Impalrment LO
At the beginning of Metatec Incorporated acquired Ellison Technology Corporation for $ million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired:
tablePlant and equipment depreciable assets$ millionPatent millionGoodwill million
The plant and equipment are depreciated over a year useful life on a straightline basis. There is no estimated residual value. The patent is estimated to have a fiveyear useful life, no residual value, and is amortized using the straightline method.
At the end of a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined:
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